You are here: Home - Household Bills - News -

Sainsbury’s Energy launches longest fixed term plan on the market

0
Written by:
17/01/2014
Sainsbury's Energy has launched the longest fixed price tariff on the market, protecting customers from price hikes for four years.

Customers will be able to lock in prices until 31st March 2018 – three months more than the previous longest fix offered by npower. 

The plan will cost the average household £1,316 a year – just £52 more expensive than the average standard energy bill from the Big 6 suppliers, according to uSwitch.com.

But the comparison site said the new plan from Sainsbury’s Energy is almost £300 a year more expensive than the cheapest tariff on the market – Spark Energy’s Direct Debit Advance 3 at £1,025 a year, which means consumers will be paying significantly more for the lengthy protection.

The new plan also comes with a hefty £50 per fuel early cancellation fee, which customers will have to take into account if they want to switch before the fixed term is over.

Tom Lyon, energy expert at uSwitch.com, said: “While many consumers have been left disappointed by the way suppliers have handled the levy-led price cuts, the launch of a new longest fix term plan on the market shows that competition is still alive and kicking.

“This new offering from Sainsbury’s Energy gives consumers over four years of sanctuary from future price hikes. This peace of mind makes it a strong contender in today’s market albeit that it comes with a hefty price tag.

“I strongly urge consumers, if they haven’t already done so, to see how their current tariff stacks up against the very many new competitive deals that are on the market. There are substantial savings to be made which could significantly improve on the price cuts that suppliers have made.”

For those looking for cheaper, short-term protection, the cheapest fix on the market comes from First Utility, costing £1,037, £279 cheaper than Sainsbury’s Energy’s new offering, uSwitch.com has said.

However prices will only be protected until 31st July 2015, giving 32 months less than the new plan. The First Utility tariff also carries a £30 per fuel early exit penalty.

The next longest fix comes from npower with its Price Protector December 2017 tariff, which is just over £100 a year cheaper than Sainsbury’s Energy’s new plan, but has three months less protection.

However, the npower tariff is free from cancellation fees so customers can move away without penalty.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Seven questions all investment beginners should ask

If your new year's resolution is to start investing, read our essential checklist before you do anything.

Close