Npower will now supply Sainsbury's Energy customers
Energy customers are used to change - the worst kind of change.
Bills constantly rise, sometimes by as much as 10%, and then when customers decide they've had enough and switch to a smaller, more affordable supplier...well, those suppliers have a habit of going bust.
Now Sainsbury’s Energy has announced that it has partnered with big six supplier Npower, so its customers will essentially be switched onto Npower's service.
If this affects you, go to A Spokesman Said now and find the best energy tariff for you.
But, this might not seem like bad news (at least from what we're being told so far) as Sainsbury’s said it will offer its energy customers 100% renewable matched electricity.
And customers are able to switch to Sainsbury’s Energy Fix and Reward v1 tariff at an average annual bill value of £1,040 – which, surprisingly, sits below Ofgem’s standard variable tariff price cap.
The energy provider will also be linked to the Nectar card scheme, so users can get valuable points.
However, energy firms have a habit of luring customers in with cheap deals, only to raise prices soon after.
Simon Stacey, Managing Director for Home and Business at Npower, said: “Working together with one of the UK’s largest supermarkets to provide the power behind Sainsbury’s Energy is a really exciting opportunity for Npower.
“We’re confident the new deal will bring unique energy offers that Sainsbury’s customers will value, along with something extra for savvy shoppers who are looking for ways to save using Nectar rewards.”
Michael Luck, director of business development at Sainsbury’s, added: “We’re really excited to launch this new partnership with Npower.
“We want to help our customers live well for less and by collaborating with Npower we’re able to give people renewable energy while taking advantage of great savings and rewards.”
These industry bigwigs always seem to have great names - there's Iain Conn, who fronts up Centrica, which owns British Gas, and now Michael 'Luck'.
We're waiting for a Mr B. Rightspark to take over at E.on!
Anyway, Sainsbury's energy customers would be right to be sceptical about the nature of this seemingly good deal.
As of April 1st this year, most energy firms increased tariffs by 10%, or £117 a year. British Gas, Npower, EDF Energy, E.on and Scottish Power have all announced they'll be making customers pay through the nose just to keep the lights on.
All the big energy firms have increased their Standard Variable Tariffs up to the maximum the new cap allows. It means an average three-bed household will pay £1,254 a year to heat and light their home – up from the old cap of £1,137.
They get away with it because many customers, especially the elderly, are less likely to switch - they just stick to what they know or find it difficult to navigate the online world.
So while this offer seems good now, there's reason to believe it could become significantly less good in the near future.
Make sure you go to A Spokesman Said to find the best energy tariff for you.
Are you paying too much for your energy bills?
We compare prices from the Big 6 and many other energy suppliers, getting you the very best price.