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Households struggling with the cost of energy bills are being offered a glimmer of hope from British Gas, which has launched a tracker energy product with a 10% savings guarantee.
The WebSaver 1 tariff, which launched last night and replaces the existing cheapest online tariff Click 6, promises to stay 10% cheaper than the British Gas standard tariff until March 2010.
Energy providers are under pressure to cut bills for consumers, but a British Gas spokesman confirmed the company is expecting to drop prices next spring.
If prices did drop next year customers on the new tariff could save hundreds of pounds on their annual energy bills.
Mark Todd, director at energy price comparison site energyhelpline.com, said: "This is the first time that we have heard of an energy product of this kind offering such a big potential saving.
"Typically, other energy providers have often offered products promising to pay slightly cheaper than the standard tariff from British Gas, but this is the most aggressive savings guarantee that we have seen."
The WebSaver 1 is the cheapest energy tariff for medium energy use households paying by monthly direct debit, although it is marginally more expensive than the Click 6 deal it is replacing.
Click 6 cost around £1,057 a year for medium duel home usage, whereas WebSaver 1 costs £1,059.
However, the new tariff is £240 cheaper than the average UK energy tariff, although if you cancel before 30 September next year you may be charged a fee of up to £60 (this does not apply if you are moving home).
Todd said he expected energy prices to drop by between 10% and 20% next spring. If the British Gas standard tariff dropped to £1,100 the WebSaver 1 would move down to £990.
"This is potentially the cheapest product around now for anyone who is not yet on a capped product. Anyone who has not switched energy providers yet should assess how much this could save them."
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