Are you paying too much for energy? Switching is easy

If you’re too busy to check your gas and electricity bills, you could be left out of pocket

MILLIONS of people are paying too much for their gas and electricity bills, says new automatic energy switching service weflip. More than 15 million homes could save an average of £275* a year by switching to a cheaper deal, but many people are put off by the time and effort it takes to move to a new supplier.

A third of people haven’t changed suppliers for the last five years and 20% know they could be on a better deal but can’t be bothered to switch.

It’s a concern that has previously been raised by Frank Field MP, Chair of the Work and Pensions Select Committee. “There is an army of loyal consumers in Britain who, for one reason or another, simply do not have the time or resources to shop around for the cheapest deals,” says Field. “Currently, the onus is on those households to make difficult and time-consuming choices between different deals offered by suppliers, often based on confusing tariffs, amongst all the other competing demands that life throws at them. Hence the ease with which suppliers can continue asking them, year after year, to pay over the odds for their gas and electricity.”

Good news

There is some good news for bill payers: from this month the Government is introducing a cap on the maximum rate that energy providers can charge. But this figure will be reviewed twice a year and it could rise, which makes it even more important to get the best deals in the market now.

With rising energy prices and a wide range of alternatives to the so-called ‘Big Six’, it’s more important than ever to shop around and ditch outdated deals. Mediumsized suppliers such as, Utilita and Ovo Energy and smaller ones like Bulb and TOTO Energy are now giving the well-regarded suppliers such as, British Gas and npower, a run for their money. Nowadays, it’s not just price that tempts people to switch; customer service and other factors play a part too. But because people think that switching energy is a timeconsuming hassle, there’s still a reluctance to do so, which means millions are needlessly paying more than they need to for gas and electricity.

Best price

This year could see the move towards new automatic switching services really gather momentum. These services continually monitor prices and move their customers on to better deals when they become available. weflip, from the makers of GoCompare, is one company that tracks prices daily to make sure households are getting cheap energy deals, and when the powerful search tool spots a saving it automatically “flips” people over to the best price.

weflip users can choose their first “flip” by comparing a list of companies and prices - and with a wide range of suppliers on offer they can tailor the list to what’s important for them, opting for well-known brands if they prefer. After the initial switch, if there’s a chance to save more than £50 a year, weflip kicks into action and makes the switch. And if an existing supplier has an exit fee, weflip takes that into account to offer the best value for money.

*Based on Ofgem data, July 2017 – November 18