Grab those vanishing power deals.(News)

Byline: Lauren Thompson

HOUSEHOLDS are being urged to snap up a cheap energy tariff as more suppliers are expected to increase prices.

Last week, Scottish Power scrapped its cheapest online plan and replaced it with one [pounds sterling]53 a year more expensive for the average home, while E.ON increased its best deal by [pounds sterling]59 per year.

It means British Gas WebSaver 11 is currently the cheapest online tar- iff, at an average of [pounds sterling]895 per year -- the only supplier to stay under the [pounds sterling]900 mark.

Online tariffs -- where you input your meter readings and pay your bills using the internet -- are the cheapest way to pay for your gas and electricity.

Deals are withdrawn only for new customers; people already on the tariff continue to pay the same price for their energy.

emma Bush, from comparison website uswitch, says: 'online energy prices are creeping up as a result of volatility in the wholesale energy market. There are still some competitive plans out there, but there is no guarantee they will be around for long. This is a last call to sign up to one now.' Experts say that energy firms might be gearing up to increase prices across the board as soon as next month.

Mark Todd, at comparison website Energyhelpline, says: 'A major price rise of around 15pc is expected between August and November, but suppliers are thought to be consid- ering smaller spring price adjustments even before then.' Mr Todd says instability in the Middle East and North Africa, the Japanese nuclear catastrophe and surging demand from China and India are all putting pressure on wholesale prices, which, in turn, could be passed on to consumers.

Gas wholesale prices have increased by a massive 75 pc in the past 12 months, according to analyst ICIS Heren.

All energy suppliers must now give customers 30 days' notice before increasing prices, following an order from regulator Ofgem that came into effect last week.

Previously, suppliers did not have to tell their customers that prices had increased until three months after the event. 'At least people will be given a month's warning when prices increase now,' says Mr Todd.

Apart from British Gas at [pounds sterling]895, the cheapest online plans are with npower at [pounds sterling]960 a year and E.ON at [pounds sterling]965 a year.