Customers have the power to cut energy bills – by shopping around
Are you trying to save some money in the new year to pay off bills that you racked up over the Christmas period? If so, there’s good news from energy suppliers who are finally passing on dramatic falls in wholesale oil and gas prices.
However, they are doing so in their usual way – by targeting customers who switch providers.
The biggest offers are Energia’s 26% and 23% discounts on electricity and dual fuel prices for new customers.
‘We haven’t had a cold winter yet. But if it does kick in, that could save people a lot of money,’ says Eoin Clarke of comparison website Switcher.ie.
‘It would knock a quarter off your bills – saving €260 on electricity alone or €392 off gas and electricity.’
Also this month, Flogas cut its standard bills by 2.5% in a catch-up move, while SSE Airtricity also introduced a 20% dual fuel discount.
Bord Gáis Energy (BGE) also appeared to get in on the act by sending out a press release highlighting a slew of goodies for newbies, such as €100 cash back, free boiler servicing and €20 worth of Tesco points (all for new dual fuel customers).
On closer inspection, these were all available before (if only online), but they are still worth a mention as they make BGE the cheapest energy provider, if taken into account.
Comparison websites are obliged to leave out the extras and compare providers based on price alone.
‘It is down to the customer’s preference,’ says Mr Clarke of Switcher.ie.
‘Do they want a cheaper unit rate or a more expensive rate with add-ons?’
However, he stresses that to get the benefit of the extras, you have to make sure to use them.
Amazingly, some customers forget or don’t get around to claiming the cash, servicing their boilers or shopping at Tesco.
Discounts are also big in the energy market.
Most of the biggest ones are available to new customers only.
However, providers also have smaller ones for existing customers – but usually only if they ask for them, with the honourable exception of BGE’s automatic 5% discount.
However, these customers would be better off sussing out their options with all providers in a very competitive market.
‘Right now, it doesn’t pay to be a loyal energy customer,’ says Mr Clarke.
‘If you haven’t switched energy supply lately, you should seriously make an effort to do so.
‘You can slash your energy bill in a matter of minutes by as much as €360 a year.’
Only 15% of people bother to switch every year so it’s easy for energy companies to offer these few great deals – subsidised by their inert mass of existing customers.
They can well afford it. Oil prices have fallen by more than two-thirds since 2014. Gas prices also dropped dramatically and are down a massive 31% since last year alone, according to energy firm Vayu.
And it expects this downward pressure to continue ‘thanks to healthy gas supply and a positive storage outlook’ as the Corrib gas field comes on-stream and supplies 56% of our needs.
Wouldn’t it be a shame if, as seems likely, most people miss out on all of this just because they don’t bother to shop around?