Energy Guides

Fixed energy deal coming to an end? Tips for your next deal

Wednesday 30 June, 2010

By Dominic Welling

dominic.welling@consumerchoices.co.uk

If you’re nearing the end of your fixed energy deal, we tell you what you should do next to prepare to get the best deal.

Nine fixed energy deals from the “big six” energy companies including E.ON, Scottish Power and EDF energy are about to come to an end within the next week or two.

If you are on one of these deals and do not make the necessary changes in time, you could end up on your provider’s standard tariff, costing you significantly more.

In the worst case scenario, your provider could automatically swap you across to its standard tariff meaning a potential increase of as much as £165 on your bills a year - unless you take action to find a better alternative.

However, swapping to the market leading online tariff could see a saving of as much as £348 a year.

The table below will help you find out which tariffs are ending and help you establish if you are affected. Then we’ll give you tips on how to switch to a new tariff which will suit you.

Source: moneysupermarket.com

Get the timing right

Typical advice to customers who have fixed deals is to look to swap at least six weeks before the termination date.

However even if there is less than six weeks to go before your fixed deal expires it is crucial to compare energy prices for the next best alternative deal to avoid paying over the odds.

Even if your termination date has passed, you should look now for the best option available to you.

On the flipside however, if you move off your fixed rate too early and you could face early exit fees of up to £75, so be aware of that as well.

Steps to getting the cheapest new deal

1. Get all your paperwork together – bills, contracts, and any correspondence you have had with your energy supplier.

You should then be able to work out what exact tariff you’re on, when it comes to an end and what the rules are surrounding switching - be aware that there may be some early exit fees to look out for.

2. Compare new energy deals to find the best package for you. If you want a new fixed deal, an energy comparison will show you the options.
3. Using a switching service like Energychoices.co.uk allows you to compare each energy supplier in your area and find out which one offers the cheapest tariff for your postcode and energy usage.
4. Once you’ve chosen your new provider, all you have to do is fill out some personal details. Your energy supplier will contact your old provider on your behalf, and write to you with the date of your switch.
5. The switch itself will take between four and six weeks and once completed you’ll receive your final bill from your old supplier - which you should check against a meter reading taken on your switchover date.

Keeping your bills down

Even once you’ve signed up to a new deal for the winter, it’s still worth considering other ways to make your energy bills as cheap as possible.

For example, is your house sufficiently insulated? How efficient is your current boiler? And have you got your hands on a smart meter yet?

1. Insulation - Properly insulating your house can save hundreds on your energy bills and cut your CO2 emissions.

A significant amount of heat is lost through the walls and loft in your house – not forgetting the draughts around windows and doors - so it’s definitely worth investing in insulation.

If you do not already have it, you should seriously consider getting all the different types of insulation.

This includes cavity wall insulation, loft insulation, floor insulation, draught proofing, and insulation for tanks and pipes.

Also make sure your windows are suitably glazed. There may be grants available through your local authority, so get in touch.

2. New boiler - Getting a new boiler can be expensive but if your current one is older than 10 years, you should start thinking about having it replaced.

While the cost might be daunting, a new, high-efficiency boiler could cut your heating bills by up to 40% straight away - so you’ll make savings and help the environment over time.

3. Smart meters - The government hopes to have smart meters in every home in the UK by 2020, and has ordered that energy suppliers pay for their roll-out.

Smart meters are electronic gas and electricity meters which will be able to send and receive information, to and from your energy supplier. This means that suppliers will be able to check and record your energy use remotely, so there will be no need for estimated bills or meter readings.

Although this will not necessarily mean smaller energy bills, they will ensure your bills are more accurate.