As a result, consumers could save substantially on their household energy bills, as online energy plans are where suppliers are already offering their cheapest prices and most competitive deals.
The move brings the average online price down to £1072 – £180 a year cheaper than suppliers’ standard plans. It also means that British Gas has the most competitive online plan on the market again.
Households stuck on the most expensive standard plan on the market will now be paying £328 a year more on average for their energy than those on British Gas’s online plan. These households can cut their energy bills immediately, just by moving to dual fuel, paying by direct debit and signing up to an online plan.
Will Marples, energy expert at uSwitch.com, said: "An online price war is exactly what consumers need – suppliers will want to shake up the energy market and gain market share, but households will be winners too. Suppliers are already offering their most competitive prices online, so any move to cut these further can only be to consumers’ advantage.
"Households only have to take three simple steps to lower energy bills: move to dual fuel, pay by direct debit and sign up to an online plan. If they ditch their expensive standard plans today and sign up to a competitive online plan they will be quids in."
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