Switching energy suppliers could save you over £300 per year

Switching energy suppliers could save you over £300 per year

By Melanie Wright

According to MoneySuperMarket.com, recent price reductions will save the average energy user a paltry £32 a year. A typical gas and electricity user is defined as someone who uses 12,500 kWh a year of gas and 3,100 kWh a year of electricity.

Matt Ridout, researcher at comparison website energyhelpline.com, said, “Although all of the big suppliers have cut their rates recently, they have only reduced the cost of their standard gas prices by around 5%. This still means there is a massive gulf between the wholesale costs the suppliers are paying and what consumers are being charged, and there have been no cuts to electricity costs by any of the major players.

“With standard prices still hundreds of pounds more expensive than the cheapest deals the best way to pay a fair rate for your energy is to shop around. Loyalty doesn’t pay in the energy market and all the advice from the government and consumer groups suggests that switching suppliers regularly should be on each households’ to-do list.”

Standard tariffs offered by energy suppliers are usually much more expensive than alternative deals, but 70% of people remain on them, even though it is quick and simple to compare other deals online or over the phone. However, the switching message is slowly getting through, with latest figures from energy regulator Ofgem showing that 6.1 million domestic energy supply accounts were switched in 2015, up 15% compared to the previous year.

Remember that switching suppliers doesn’t involve any new pipes or meters. All you need is the name of your current tariff and supplier, and how much you currently pay, and you’ll be able to find out whether you can save money by switching. Your power supply won’t be interrupted when you switch and no-one will need to call at your home.
Some of the cheapest tariffs currently available are fixed tariffs, which give you peace of mind that your costs won’t go up even if wholesale energy prices increase. For example, GB Energy Supply’s Fixed 12 Sapphire tariff costs an average of £765 a year, a saving of £298 compared to the average £1,063 cost of the Big Six standard tariff.

 

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