A CULTURE OF CHANGE

Irish people are doing their homework and making the switch . . . and reaping big rewards, writes Tanya Sweeney

During the heady days of the Noughties, Irish people never liked to be seen on the hunt for a bargain.

“It was a fall-out from the Celtic Tiger,” says Daragh Cassidy, head of communications for pricecomparison website Bonkers.ie.

“The Irish hate to be thought of as miserly. There was a certain shame in looking around for better value 10 or 15 years ago. But that has really begun to change in more recent years.”

Where once switching service or energy providers only ever happened in a financial pinch, now it has become part and parcel of running an effective household.

“We’ve seen Irish people accept that they deserve better value,” says Cassidy. “Money is a finite resource, and people are starting to realise that it needs to work for you as hard as you work for it.”

Ireland is the fourth most expensive country in Europe when it comes to energy costs, and people have started looking for ways to ease the sting of a hefty bill landing on the doormat.

In the 10 years since pricecomparison websites like Switcher.ie, Bonkers.ie and Choosy.ie have landed on the Irish market, many have become adept and savvy consumers.

“There has definitely been an education journey for Irish households,” notes Eoin Clarke, CEO of Switcher.ie.

“Before the arrival of comparison websites, the level of transparency was different. Now, you could compare across a number of suppliers. The number of suppliers also increased – all the more reason to shop around.”

Switcher.ie’s research shows that around 15pc of customers switch suppliers of energy, TV and broadband every year.

“What that means is that a cohort of people aren’t availing of the best deals.”

These days, consumers don’t just want more bang for their buck – they want better, cleaner and greener bang, too.

Choosy.ie launched last year, and they have noticed the switching trend growing among Irish users.

“The biggest change we’ve seen in consumer behaviour in the market is people citing environmental, ethical reasons for switching [energy providers],” says Tony Cross of Choosy.ie.

“There has been a huge demand to know where energy comes from, and people are extremely concerned about the environment.”

Once upon a time, it was assumed that green energy would cost people more, but this misconception has been thwarted in recent times.

“At Choosy we’ve seen 96pc of customers choose a renewable energy supplier when they switch. We’re really pleased Electric Ireland now offers a renewable energy tariff, and that there is innovation going on in the market, such as Flogas’s ‘sustainable’ gas product, which offsets carbon by funding carbon-capture projects in the developing world.

“There’s lots of talk of a ‘new normal’, or a ‘green restart’, and Choosy would like to see renewable fuel become the new normal for Irish households.”

Clarke agrees: “Switching to a green energy plan has a double impact – consumers save money and can enjoy a greener energy plan.”

Cross adds: “From what we’ve seen in data, there has been a huge growth in the last five years and people are much more open to switching.

“There is also a growing realisation that there are some great offers out there, and certainly in the case of energy providers, switching often means nothing more than filling out a form.”

Covid-19 resulted in what Cross describes as a slight “dampener” on the growing switching trend, although there was a bounce-back in Choosy.ie activity in September.

“Despite the fact that most people are at home, their lives are still extraordinarily busy,” says Cross. “They’re combining work with caring for children and other family members. It has had an impact on how regimented people’s days are – usually, people might have done their service switching during a lunch break at work, but lunch breaks are a lot busier at home.”

In fact, now is precisely the time to make savings, says Cross. “Kids are at home, we’re all at home, and people aren’t going out. They have the heating and telly on. It’s really a great time to bring those prices down.

“If you live in a family house rather than a modern one- or two-bed flat, it’s likely you are using a higher-than-average amount of electricity.

“You could be looking at bills in excess of €1,000 a year. With a 30-40pc saving, you could save around €300€400.

“And, at a time when people are concerned about job security, this is one way to minimise monthly bills.”

Clarke adds: “In the energy market in particular there is a lot to look at. A typical, threebed house can save up to €475 a year on bills. In winter, when energy usage increases, those savings could become higher.”

With broadband becoming ever more central to the smooth running of the home (and home office), Cross notes that some people might be wary of making any changes, particularly when it comes to broadband.

“People are concerned about risk,” he says. “When you switch broadband provider, we recommend that you sign up to a new provider for one month and have the old one running at the same time.

“It might seem quite expensive, but because of the savings you’ll make on a new broadband [deal] over the year, there’s a definite point in making the switch.

“First, broadband speeds are growing and demand for high speed is growing. Virgin launched its first 1GB connections in 2020, joining the other high-speed players in the market.

“Working from home and more connected devices means speed has been a higher priority. Most customers with access to a high-speed network can switch to better speeds without increasing their monthly costs.

“New 5G networks not only offer high-speed mobile connections for urban types, enabling users to stream content on the move, but they also offer a genuine alternative to a landline broadband connection in rural areas where the high-speed networks have yet to reach.”

People aren’t just looking for faster broadband; they’re also becoming more discerning when it comes to choosing broadband bundles and deals.

“The interesting thing with broadband services is that for a long time, subscription providers like Sky had incentivised people with Premier League or GAA or movies, but now there are alternatives like Netflix, NOW TV or Disney+,” Cross says.

“What this means is that you can go for broadbandonly deals, which can dramatically cut your costs. People want to be a bit more flexible on where they spend their money.

“If you’ve had enough of Netflix, for instance, you can cut your cloth as it were, and spend that money elsewhere, where you feel it’s important.

“We are seeing customers being able to personalise their TV and broadband packages, and spend more money on broadband speed.”

With the mobile phone market becoming more competitive than ever, the comparison sites have noticed another interesting trend taking root among Irish consumers: a move into phone ownership, away from phone rental.

“The use of landlines, especially in urban areas, has diminished greatly over the last few years,” says Clarke. “In years gone by, people would switch their mobile contracts to get the latest handset, but handsets have caught up a little.

“Now if you have a phone that’s two years old and you want to keep it, why have a big phone contract?

“Some sim-only deals can cost from €7.98 a month. There’s definite value to be had.”

There are even bargains to be hand in the financial products sector.

“There’s a huge focus on fixed-rate mortgages now,” says Cassidy.

“Ten or 15 years ago, the number of fixed-rate mortgages would have been negligible, but people probably want to feel certainty of what their mortgage repayments will be.”

“It’s the perfect time of year to shop around, especially if people are working out their budgets for the year,” says Clarke.

“The thing is, switching is super-easy,” says Cross. “To switch energy providers, for instance, all you need is your MPRN number, you meter reading and your bank details. You can switch in under five minutes, and save up to €400. Even if it takes you a half an hour to find a bill or read a meter, it’s worth it.”

Mortgage switching is a more complicated beast, but can reap huge rewards if you manage to do it.

“The barriers to switching may be higher, but the financial rewards are greater,” says Cassidy, who has seen users of his site save up to €300 on their monthly repayments.

Above all, it certainly pays to take an afternoon to go through a comparison site and search for more costeffective services that will suit the changing needs of the 2021 home better.

“At Choosy, we notice that Monday is our busiest day of the week, which probably means that people have paid a big electricity bill over the weekend and thought, ‘well, I’m not having that again’,” Cross says.

“Check if you’re in contract with your suppliers, and if not, go and save money. A lot of the time, you are paying well over the odds.

“And if you’re working from home, why are you doing that? There are a few hundred euro just waiting to be saved.”

‘Kids are at home, we’re all at home, and people aren’t going out. They have the heating and telly on. It’s really a great time to bring those prices down’