Be a bright spark and switch fuel deals now

Let’s put heat on Big Six

POWER crazy energy giants have raised bills by up to 6.7% in “price hike fortnight”, with SSE the latest of the Big Six to announce increases.

And now consumer champion Which? is urging households to take control and make big savings by switching to smaller companies offering cheaper deals.

The average household pays £1,200 a year for gas and electricity, not including those latest rises.

Mark Todd, co-founder of switching service energyhelpline, said: “If you stay on an expensive standard tariff you are basically burning your money every time you turn on the heating.

“Don’t do it. Switch and get a bargain tariff not a pricey one. Think of this – would you like your supplier to have the £200 to £300 of savings or do you want it?”

But, with so many small firms offering energy, how do you know which is best, are they as good as the bigger firms, how easy is it and what are the pitfalls?

Here, we answer all your essential questions...

Q Why should I switch?

A No-one wants to pay over the odds for exactly the same service. Which? says households could be overpaying by £434 a year by being loyal to one supplier.

Your gas and electricity comes down the same pipeline and wires whether you choose a big brand such as British Gas, a supermarket such as Sainsbury’s or a smaller company like Bulb Energy. The only difference is the price, and on this occasion cheapest is best.

Unlike buying a bottle of wine where the quality can vary according to the price tag, energy is the same whoever provides it.

Q Are the smaller firms reliable?

A There are more than 70 energy companies to choose from and apart from the Big Six – British Gas, EDF, E.on, Npower, SSE and Scottish Power – they are classed as medium or small energy firms.

The medium category, which includes First Utility, Ovo Energy, Utilita and Utility Warehouse, regularly win customer satisfaction surveys and last week Utility Warehouse won a Which? award for Utilities Provider of the Year, with Octopus Energy shortlisted.

Smaller suppliers include Co-operative Energy, Economy Energy, Ecotricity and Flow Energy and are just as reliable as the household names. The downside of new suppliers that have entered the market recently is that the service is untested. Switching could take longer and they are likely to have a smaller customer service team to deal with complaints.

Q What kinds of tariffs are available?

A These are the main ones to be aware of: Fixed Price – they are normally set for a year, but two and threeyear tariffs are also available. They protect you from volatile price rises for the term you sign up for.

Variable Price – these leave you at the mercy of the market and can go up or down, but suppliers must give you 28 days notice of a change.

Green – these tariffs deliver renewable electricity into the grid to match your usage.

Standard – the default tariff, which around half of energy customers are on. It’s the one you are moved to as a special deal ends or if you have never switched. It tends to be the most expensive.

Q What are the pitfalls of switching?

A If you are on a fixed rate, getting the timing right is important as going too early could incur a penalty fee for an early exit, so check your contract.

If you are in credit when you switch, the old supplier should automatically pay you back, but keep an eye out, and chase them for any outstanding cash.

To make sure you are not paying more than you should by direct debit, send regular meter readings so you pay for what you are using and not an estimated figure.

If you are on a smart meter, check it’s compatible with a new supplier or you will need to get a new one.

Q What happens if my energy firm goes bust?

A Ofgem has a safety net that means you will always have an energy supply. You will be moved to a new supplier chosen by Ofgem.

Q How can I be sure I’m getting the best deal?

A The industry is huge, with suppliers all offering a selection of tariffs and some only operating in certain areas. You don’t need to tackle finding the best deal yourself.

Comparison sites, such as uSwitch.com, moneysupermarket. com and gocompare.com, can help.

The Mirror also has an energy switching service, in association with Ofgem accredited firm energyhelpline, which helps readers find tariffs to suit their needs.

Visit mirror.co.uk/energy or call 0800 008 7794.