Energy switchers: Changing providers can save you money
Changing your provider is less hassle than you think and is sure to save you money
THINGS are hotting up in the energy market. As the weather gets colder, it’s time to pull out the woolies and fire up the heating.
We’re all trying to be a little bit greener these days (and come the Budget on Tuesday there’s sure to be a raft of measures to ensure we do), but in the electricity market it’s consumer’s choice.
With no fewer than 13 suppliers in the country, all promising the lowest prices and the best deals why are we so rubbish at finding one that saves us money?
Bills are complicated, terminology can be bewildering and who knows what a kilowatt is anyway?
But the hard-earned cash you’re expected to fork out isn’t complex at all – just expensive. So, let’s see what’s coming this winter and whether it’s enough for you to make that call and switch.
Price Increases
Four energy suppliers, BEenergy, Glowpower, Iberdrola and Pinergy are increasing their electricity prices from November 1, according to comparison site www.powertoswitch.ie.
Electric Ireland already announced an increase of 3.4pc starting this month, adding around €35 to the average annual bill.
It comes on the back of many of them having reduced prices earlier in the year and suppliers blame increased network and system costs.
When comparing tariffs it’s important to ask suppliers what the annual cost will be for a house of your size, in your area. Rather than go on ‘averages’, dig out (or ask for) your usage for say, 2019, in kW units. That’s the figure to compare when you’re going looking for a better deal.
PSO Levy
This levy, which is charged to all electricity customers to support green energy manufacturing, is increasing by a whopping 130pc this month.
That will add about €50 to your bill each year. Set by the Commission for Regulation of Utilities (CRU), it’s now €88.80 which is the highest yet. Since it’s unavoidable, you need to find your savings elsewhere.
Ciaran Devine of Bright Energy, one of Ireland’s newest suppliers, says there’s “never a good time” for the levy to increase, “but it’s for future generations”, he adds. “We can’t be fans of Greta Thunberg or David Attenborough without making a sacrifice, so investing in low cost renewables is important.” Bright are Derry-based providers of electricity, with gas coming next year, and have simplified their offering by only having one tariff. “It’s 100pc green with no yearly contract and no exit fees,” he says of the company’s product, which marks it out from others who make you sign up for a year or two.
Switching
The monthly number of people switching electricity provider has declined 11pc year on year and 7pc month to month, according to the CRU. Why are we so poor at moving?
Brendan Halpin, CEO of WeSwitchU.ie says it takes just five minutes to look at your electricity contract to see if you are eligible to switch providers.
“Take a look at your bill and if you’re out of contract, meaning you’re 12 months with the same provider, then switch. It still baffles me how many people stick with the same company every year when the savings they can make by moving are significant. Don’t let inertia trump effort.
“Energy providers bank on the fact that we’re all busy, and moving provider is often regarded as another hassle we can do without. But if you’re prepared to drive to a less convenient supermarket for your weekly shop to save money, why wouldn’t you invest five minutes of your time into switching energy providers?
With so many people continuing to work from home, energy bills this winter are going to be much higher than usual. So save yourself the shock of a bigger bill by ensuring you’re getting the best deal available.”
The saving of moving from a standard (the highest) tariff to a discounted one (often only available for new customers and switchers) is on average €207, according to the CRU.
OneBigSwitch.ie has done a deal with Energia for discounted electricity and a free Netatmo smart device (worth €329) for switchers via its website.
Comparison site Switcher. ie nominates Bright, GlowPower, BEenergy and Energia as currently having the cheapest rates, as long as you sign up for direct debit and online billing.
Smart Metering
There’s a five-year project underway to replace all existing electricity meters with smart devices. 250,000 will be delivered by the end of this year, and 2m by 2024.
Estimated billing will be a thing of the past, and customers will be able to get realtime information about their energy usage which tends to result in lower bills.
There’s no up-front charge to customers for meter installation, but the €1.2bn cost will be spread over time. A trial run showed savings of €50 on bills with some households reporting a reduction of €174.
‘If you’re out of contract then switch, don’t let inertia trump effort’
Fuel Allowance
The winter fuel allowance has been announced ahead of Tuesday’s Budget. The meanstested payment is given for 28 weeks at a rate of €24.50 per household.