Compare energy pricesEnergy Guides
Tips for comparing gas prices
Updated: Monday 20 August, 2012
By Martin Fagan
You can reduce your gas bills when you compare energy prices online.
Make sure you aren’t paying too much for your gas by comparing the many different deals on the market using a price comparison website you can trust.
Gas prices are notoriously difficult to predict, so it is important to regularly compare the different gas tariffs and ensure you are on the right deal for your needs.
By using our free energy comparison service you can easily compare gas prices and quickly find out whether switching tariffs could significantly cut your energy bills.
How do I compare gas prices?
Our comparison service has been specifically designed to be straightforward and easy to use.
Enter your postcode into the calculator above and select what sort of tariff you are looking for - either just gas or both electricity and gas packages.
The calculator will then compare the market and come up with a list of deals suited to your needs.
Then all you need to do is click continue to switch to your new gas plan.
After that just sit back and relax as your new supplier will contact your existing supplier to do the rest of the legwork and organise a smooth switchover.
What factors determine gas prices?
Gas prices fluctuate constantly, so it’s definitely worth keeping an eye on what different tariffs are available at any given time. In short, the major factor governing whether or not your energy bills will rise is the wholesale energy prices.
Suppliers buy energy at wholesale prices on what’s called a forward contract, which means they might be buying the bulk of the gas they need in December in June, six months before they require it. They also settle on a price when they buy it.
The risk is that between buying the gas and it being delivered, the wholesale price falls which means the energy company has paid over the odds for the energy and it will generally pass this loss onto the consumer in the form of higher energy bills.
Sneakily, if between buying the energy and it being delivered the wholesale price rises, the energy company rarely passes this saving on to consumers. Wholesale prices can rise or fall depending on several factors, including things like fuel shortages due to ancient infrastructure (leaking pipes, inefficient power generation), disputes between countries and even wars.
Another factor that influences energy prices is the weather. During hot summers, commercial premises crank up the air conditioning and homes switch on a battery of fans and cold air blowers; during particularly cold winters, homes and businesses turn the thermostat up and leave the heating on for longer periods. All of which mean a surge in demand.
If the energy demand created by extreme weather coincides with a fall in supply, then market forces of supply and demand means prices will increase.
Therefore, in theory, if wholesale prices go up, so do our gas bills. However by the same token if wholesale prices drop, so should our bills.
UK household energy bills last rose strongly in the autumn of 2011 and the spring of 2012, with most suppliers increasing their domestic prices in line with higher wholesale prices.
But whatever energy prices are doing it is important that you regularly compare energy tariffs and switch if necessary.
Tips to cut your gas bills
Although switching to a cheaper gas tariff is the best way to reduce your bills, there are other ways in which reducing your energy usage you can save money.
The best ways to do this include:
- Insulating your home - loft and cavity wall insulation will dramatically cut heating costs
- Turning down your thermostat by one degree centigrade can save up to 10% on your heating bill
- Closing your curtains at dusk will stop heat escaping through the windows
- Using a timer effectively to make sure the heating is on only when you need it.
Featured gas guides
Top tips for comparing gas prices
Switching energy suppliers can be one of the easiest and quickest ways to save money on your household’s energy bills.
Switching your energy supplier or just your tariff is one of the easiest ways to save money on your annual energy bills.
Switching electricity guides
|
|