Comparing Electricity Suppliers
Were you shocked when you opened your last electric bill? If so, you may want to consider comparing alternate electricity suppliers to save some money.
If you weren’t surprised by your electric bill, just wait until you get your next one. Recent price increases from several of the major UK energy providers guarantee higher bills for consumers. British Gas announced a 9% increase in electricity rates and EDF electricity rates increased by 17%.
Some experts expect the cost of energy to increase by up to 40% this year. (Guardian) If you haven’t considered comparing electricity providers, now is definitely the time to do so.
Why would comparing electricity suppliers help me?
There are literally hundreds of different electricity tariffs or deals available to consumers. After the deregulation of the electricity industry in 1999, consumers were free to choose any supplier in their area. And many of them have done so, some switching electric companies repeatedly to take advantage of good deals. Yet it is estimated that up to 10 million customers have never switched energy providers, which could have saved them collectively up to ₤1 billion. (Uswitch)
You could compare electric tariffs and find one that could save you a significant amount of money. Some comparison sites note that you may save up to ₤150 (Unravelit) or ₤233 annually by switching energy suppliers. (Switch With Which)
How do I compare electricity suppliers to find the best deal?
The good news is that you really don’t have to spend days digging through information form different companies. All you have to do is use one of the online energy comparison sites from sources such as Uswitch, Confused or Money Supermarket.
You just enter your postcode, click the type of energy you’re interested in such as “electricity” and fill in a short form about your current supplier and typical energy usage. The comparison site will locate suppliers in your areas and display your choices. Once you choose a new supplier, the switch website will take care of the details. Usually all you have to do is provide a final meter reading for the old supplier.
Can anyone compare and switch electricity suppliers?
Technically yes, the process is open to all consumers and you can switch as often as you like. The switching process generally takes between four to six weeks to be completed. (Uswitch)
However, the detail that is generally not mentioned is that if you owe money to your current supplier, you cannot switch suppliers until you pay off the debt. This situation affects almost 1 million UK energy customers, often the people who are truly in need of a cheaper supplier. Sean Gardner of Money Expert says “Generally speaking, if you have defaulted on a recent energy bill and still owe your supplier money, you will be tied into that contract until you pay up. (Money High Street)
Is there a fee for comparing and switching electricity suppliers?
No, the consumer pays no fees. The process is funded through commissions paid to the websites by the energy companies. However, some people feel this may be misleading to customers. Jeff Howell notes that comparison websites make between ₤20 and ₤50 for each new customer they deliver to energy companies
“When an energy company claims to be independent and impartial, it s possible that this is not entirely true and that it has a financial incentive to direct you to switch to the energy provider that pays it the most commission.”(Telegraph)
It is also worth noting that not all energy provides are listed on comparison websites. For example, Ebico, the UK’s only not-for-profit energy supplier is rarely listed. They note “Currently, switch companies cannot offer a genuinely neutral comparison because not all suppliers choose to pay switch companies.” (Ebico)
So use caution and common sense when comparing electricity suppliers and if you don’t see a company listed you can always go directly to their website for information.
Can I change payment options when comparing and switching electricity suppliers?
Yes, the comparison websites allow you to choose payment options for your new supplier. You may want to look into the online tariffs as these are among the most affordable plans around. Although you won’t receive paper bills and will have to read your meter and enter the reading online, it could save you a substantial amount of money. Online tariffs are currently “The most competitive deals on the market”. (Energy Choices) With the high cost of electricity, online tariffs are definitely worth checking out.
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