An energy price war brings down bills

Rarer than a scorching British summer is the idea that the UK’s energy companies can ever provide good news. But there’s plenty of it at the moment as a price war among suppliers means homeowners have the chance to fix their bills for two years — protecting them from further price hikes for that period, and at cheaper prices than many variable rate deals.

One of the offers comes from EDF, with its Blue tariff. It says the average household in the UK will pay £1,059 a year, prices are fixed until April 30, 2014 and the firm promises to tell all customers if a new deal comes to market that could save them at least £52 a year at typical use. Anyone who wants to quit the tariff can do so at any point without facing early termination fees.

They might not be as famous as the ‘big six’ but the gas and electricity coming through is the same and they're often considerably cheaper - particularly Ovo, First Utility and the Co-op. When Scottish Power leapt to the top of the best-buy table earlier this month with its Energy Fixed November 2013 deal, at an average annual cost of £1,052, First Utility quickly took its crown with its iSave Fixed V3 plan, which is fixed for longer - until 31st December 2013 at an average cost of £1,040.

Other quick ways to save include paying by direct debit and signing up to paperless billing, turning the thermostat down just a tad (a one degree reduction could save the average household £40 a year), insulate lofts, floors and walls, and switch to longer life, energy saving light bulbs.