Energy Guides

When should I switch energy suppliers?

Friday 23 January 2009

By becca.talbot@consumerchoices.co.uk

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Switching energy suppliers can be one of the quickest and easiest ways to save money on your household’s fuel bills. However, the energy market is very complex and while one supplier may appear to have a better deal now, another may work out cheaper in the long-term. Knowing when to switch is key.

Compare gas and electricity prices

Earlier this week the UK’s biggest energy supplier, British Gas (www.britishgas.co.uk), became the first company to reduce its prices in 2009. The company has promised to cut its customers’ gas bills by 10% from 19 February, reducing the average annual gas fuel bill to £793.

The company’s WebSaver 1 tariff is currently the cheapest British Gas tariff, but is now the right time to switch your supplier?

Here are the top five tips to help make the supplier switching process a success, helping you save money on this year’s energy bills…

1. Pricing

Increases or reductions to energy prices are influenced by changes to wholesale oil and coal costs. These costs can rise or fall, depending on several factors, such as:

Fuel shortages (eg pipe leaks)
Wars
Disputes (eg Russian and Ukraine)

Since last autumn there has been pressure on the energy companies from customers and consumer groups to reduce prices following a drop in wholesale costs. While there has been a promise from Scottish & Southern energy to cut prices, British Gas has been the only supplier to lower prices so far. Now we just have to wait…

2. Waiting

Because Britain’s “big six” energy suppliers tend to increase or cut their prices around the same time, knowing when to switch really is a waiting game.

You should wait until all the suppliers have made changes to their tariffs and prices before deciding to switch. If you switch too soon you could miss out on an even cheaper deal, or may find yourself locked into a fixed price tariff which charges exit fees.

3. Watching

Keeping a close eye on the energy market will help you stay on top of any price or tariff changes, so you know exactly who is cutting (or raising) their bills.

EnergyChoices.co.uk brings you the latest energy news as it happens, so make sure you subscribe to our RSS feed and email alerts, to keep on top of energy price changes. Switching to a cheaper tariff could save you hundreds of pounds on your household’s annual fuel bills.

Subscribe to our RSS newsfeed >>>

4. Comparing

Following a bout of price cuts or price increases, it’s essential you compare the energy market to make sure you are on the best deal available.

The cheapest tariffs will be those that are managed online, which you apply for over the internet.

British Gas’s WebSaver 1 tariff is currently British Gas’s cheapest online tariff. However, because prices are dependent on where you live and how much energy you use, you should do an online energy comparison to make sure you choose a supplier and tariff that meets your needs.

Opting to pay by monthly direct debit can help you save money on your energy bills, as most suppliers charge a fee for processing payments in other ways. And taking a dual fuel tariff (both gas and electricity) from one supplier will also help cut down your costs.

How can I reduce my energy bills? >>>

5. Switching

Once you’ve compared the energy market and seen further companies make their price cuts, switching energy suppliers is easy. It will save you money, not just because some suppliers are cheaper than others, but also because better deals are almost always offered to new customers.

Switching supplier could also get you a higher standard of customer service, and extra features, such as boiler cover.

It’s easy to change suppliers using a switching service like EnergyChoices.co.uk. All you have to do is choose your new supplier and fill in some personal details on our online form. We’ll pass these on to your new supplier who will be in touch with details of your switch.

You don’t have to contact your old supplier, but to ensure the smoothest of switchovers you should really give them 28 days notice of your switch, something you should consider putting in writing too.

It’s also important to remember that the switching process normally takes between four and eight weeks, so during that period you will still be being charged the more expensive rate of your old tariff.