Its standard tariff bills are going to rise by 9% for electricity and 3% for gas with effect from February 4 this year.

That means the average home paying its standard tariff is going to face a £1,249 bill a year - £98 more than previously.

One small silver lining for customers is that the move comes later than most other providers.

Back in October, Scottish & Southern Energy (SSE) raised its annual dual fuel bills by an average of £67, then in November, British Gas and Scottish Power hiked their standard bills by an average of £79 and £54 respectively.

Move now to avoid hikes

You don’t have to put up with these price rises. Pretty much every home that’s paying for a standard tariff could save money by moving to one of the market-leading online energy tariffs.

In fact, the average home hit by E.ON’s hike could save £262 a year by switching to the cheapest gas and electricity deals on the market – EDF Energy’s Online Saver V8, which has an average bill of £987.08.

And if you are with one of the other suppliers, switching to this deal could save you even more. For example, the average Scottish Power customer pays £1,357.18 on its standard tariff, meaning potential savings of £370 by moving to the market-leading EDF Energy rate.

Scott Byrom,’s utilities manager, said: “No one should be languishing on their provider’s standard deal any more, my advice is to swap to a monthly direct debit scheme and manage your account online.”

Finding the best energy prices for you

Not everyone can save money simply by switching to the market-leading EDF Energy tariff.

The cheapest gas and electricity for your home depends on where you are in the country and how much energy you use.

Because of that, the easiest way to find the best price is to run a search through the gas and electricity comparison tool. Tell it your postcode and current annual bill, and it will find the cheapest provider.

In the meantime, here’s a table showing the potential savings:


 Average standard tariff

 Average online/best tariff

 Saving against standard

 British Gas 


WebSaver 10


 EDF Energy


Online Saver V8



 £1,249.15 (from February 4)

SaveOnline V5




Sign Online 21


 Scottish Power


Online Energy Saver 12


 Scottish & Southern


Go Direct 5


 First Utility


iSave V7


 OVO Energy


New Energy






Sourced by 11.01.2011