British Gas and Ovo axe cheap energy deals

British Gas has today withdrawn what was the cheapest variable rate deal on average, its Web Saver 8 option (see the Cheap Gas & Electricity guide).

And from tomorrow, Ovo Energy will up the cost of its cheap New Energy Fixed tariff from a typical £926 a year to £944.

Energy analysts have been warning for months that the market has "turned a corner" with pricier tariffs likely to be the norm (see the Energy deals pulled MSE News story).

British Gas axed what was the cheapest pre-pay deal last month while various other tariffs have been pulled over recent weeks.

However, energy firms have not hiked standard tariffs, which would hit most existing customers not locked into a fix.

Price comparison site uSwitch.com says there is no threat of imminent rises to standard tariffs.

Npower now offers the cheapest variable rate tariff based on average usage, according to uSwitch, at a typical £890 a year. Ovo's new fixed rate deal, where the price you pay per unit won't change for 12 months, will still be cheapest on average, uSwitch adds.

Slash costs

If you've never switched tariff before, you could save hundreds of pounds per year. Those on a standard tariff, which cost around £1,200 a year on average, pay around £300 a year more than those on the cheapest online deals.

To find the best tariff, compare the options available via a comparison site (see the Cheap Gas & Electricity guide and Should I fix? MSE News story).

The cheapest deals are available to those who get bills by email and pay by direct debit.

When switching, remember that when you see a tariff described as cheapest, it is only best value as a nationwide average.

The energy market is complicated so determining which is the cheapest provider for you depends on where you live and how much power you use.

This is why a comparison, based on your circumstances, is key.

Further reading/Key links

Slash energy costs: Cheap Gas & Electricity Your rights: Fight Energy Direct Debits Capped tariff help: Is Your Cap/Fix Ending Soon? Boiler protection: Boiler Cover