E.ON, one of the leading energy suppliers in the UK, has announced plans to offer customers free gas and electricity for two months under a new deal. As households in the UK find themselves on the cusp of an energy crisis this winter, E.ON’s offer may seem too good to be true.
The deal is for customers to sign up for the ‘Energy Fit Plan’ tariff for a minimum period of two years in exchange for two month’s free gas and electricity, Tesco Clubcard points, online energy advice and a free energy smart meter.
Whilst not the cheapest tariff supplied by E.ON, the deal does afford customers the opportunity to save a little cash ahead of Christmas. The benefits of committing to E.ON’s two-year energy tariff must be weighed against the negatives. In this case, the energy supplier is asking customers to tie themselves into a long-term deal for short-term benefits (namely the two months of free energy and the smart meter).
Although committing to a long-term energy contract is usually unwise, energy prices are rising at such an extent that the deal may provide stability to customers who might otherwise be at the mercy of more flexible tariffs.
The cost of electricity and gas central heating is causing many households to seriously consider going cold this winter to save money. According to a recent uSwitch.com survey, 32 per cent of energy customers in the UK are adamant that gas and electricity tariffs are unaffordable. Unfortunately, prices are set to rise further as energy providers prepare to implement a more environmentally friendly infrastructure.
Currently averaging £1,293 per annum, household spending on energy bills is expected to reach £1,500 in the near future, at which point 77 per cent of households will ration usage whilst 36 per cent will feel compelled to turn off heating altogether.
Director of Consumer Policy at uSwitch.com, Ann Robinson, said: “This is a wake-up call and the clearest evidence yet that the UK is on the brink of an affordability crisis when it comes to household energy. We are now just £207 or 14 per cent away from hitting an affordability ceiling, after which consumers will start rationing their usage as though they are living in the third world”.
With energy costs becoming more and more unaffordable, there are some relatively inexpensive home insulation measures worth implementing to make your home more energy efficient. cavity wall insulation and loft insulation are both effective ways of insulating your home, which will help reduce your heating bills.
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