So at last Ofgem has called a full investigation into the energy market. Taken a new leader to do it. The Guardian has written a good article about the whys and wherefores of this investigation here . For this post though I don’t want to debate the history, reasons and politics, I just want to show you the importance for, and ease with which, you can and should look at switching your supplier on a regular basis.
The consumer has to take some responsibility. I don’t mean for the hikes and the apparent huge profits that the big 6 make. I mean to be proactive and take a short time to look for a lower price. If more of us did this then perhaps there would be some more competition and less complacency in the energy market. For those of you who don’t just let your car or house insurance renew each year, it is the same principle. If you do just let your house and car insurance just renew let me tell you it is costing you hundreds of pounds a year. Never has a renewal been the cheapest quote for me in over 25 years of driving and only once for the house!
Because you would be daft not to do so. If you haven’t switched for many years, chances are you are paying way over the odds for your energy. You’ll be on a standard tariff the most expensive you can have. The company you are currently with will have had other offers, fixed tariffs, promotions etc., and you have missed them all, to say nothing of the other companies.
I look to switch every year and think there was only one year when I didn’t change and that was a tariff where I was informed by the company if they could put me on a cheaper tariff. That offer was only on for a few weeks. The benefits of signing up to Martin Lewis’ website‘s emails, you get to know this stuff and make sure you are with everyone else who is first in the queue as often these deals are limited to the fist xx thousand.
Is It difficult?
Not really. Since 2010 energy companies have to send you an annual statement which will have all the information you need, i.e. consumption over the year. Even if you don’t have this you can still use the information from old bills. You can usually sign up to look at your account online, so you can also use that if you don’t keep your paper statements. Go to any of the switch sites, type into your favourite search engine “Switching energy” suppliers and take your pick. Always worth checking more than one. However, this is where the brilliant Money Saving Expert website is great again. Now, go to that link. That will take you painlessly through comparing prices. Name, address, postcode and consumption and away you go. Remember that just because your mate 200 miles away uses the same amount of energy as you, it does not follow that you should have the same energy supplier.
Then sign up for the email on that page. You can set a minimum for how much you want to save a year before switching and you will automatically get an email telling you that you could save this amount and to look at switching. Excellent. So you can switch and forget about it. Some clever technological whatsit will continually check switching for you.
Then, use more than one switching site such as uSwitch which is probably the most used site. It also covers every other type of insurance. It also provides notification if you could save at anytime.
Can you make make further savings?
Sometimes. Remember paying by direct debit, same supplier for gas and electricity will also bring the price down.
Armed with the information from searching the switch sites through Martin’s site (although strictly speaking he sold it didn’t he?!) then look at cashback sites. The best is Topcashback (Trust me I’ve been using cashback sites for years). Occasionally you can get some cashback but going through another switch site and getting the same offer and then also try direct as the supplier may offer a cashback after three months.
What if you have no Internet access?
Well you do have access, clearly! Of course you may know someone who doesn’t but I would hope that if you care that much you would look up on the Internet for them! (One can look at changing using other methods but they would annoy me I have to say but then I’m anti social.) More details here about how and when you can change your mind and what to expect from the company. (This is particularly relevant for a company you’ve invited into your home etc.)
What else do you need to know?
It takes flipping ages. Most commonly 6 – 8 weeks. So now is the perfect time to be looking to switch. (The companies may not be allowed to raise prices but there will be offers and if you haven’t switched recently you will more than likely be able to make a saving.) Remember switching in December isn’t the best time, by the time it has all gone through the most expensive part of the year has gone.
You may be on, or choose a fixed tariff which may have early exit fees. It is still possible that it will be cheaper to pay this fee and switch. I truly believe that very few companies and certainly none of the big 6, have consumers at their heart. They have profits! Therefore, trying to make it look attractive not to switch, taking 6 – 8 weeks to administer the switch and not informing us of better tariffs they provide are all ways of keeping our custom and prices high. Let’s hope the investigation brings some changes.
Also a cautionary note on the switch sites – make sure you check that you want to see all the deals. More information about his here on the Financial Times website.