Energy switch-up could save you €2,000

DO you live in one of the many bungalows or detached homes spread across Ireland?

Then you could be missing out on savings of up to €2,000 a year on your energy bills.

That’s how much Irish householders are missing out on per year by failing to switch energy providers, according to the WeSwitchU.ie energy-switching index. And the comparison service says those living in bungalows or detached homes can benefit most by trading in their current supplier for a new one.

WeSwitchU.ie has produced an index showing the gap between the cheapest and most expensive plans on the market – with a €2,000 annual difference between some dual-fuel plans for these house types.

For semi-detached homes, the index still reveals sizeable savings of €800 for dual-fuel customers (i.e. they are paying €2,250 when they could be paying €1,450 per annum).

And even apartment or terracedhouse residents can save €620 (€1,600 versus €980 per annum).

‘Based on average consumption, the index clearly shows that many Irish households can potentially slice €2,000 off their bills from a premium annual cost of €5,000 to a net cost of €3,000 with the cheapest provider,’ said Brendan Halpin, CEO of WeSwitchU.ie. ‘There is huge inertia out there when it comes to switching providers but when you remove the obstacles and the perceived “hassle”, it could save people the cost of a family holiday in Ireland every year.’

Research from the Commission for Regulation of Utilities shows that half of Irish households have never switched energy supplier.

Based on Central Statistics Office Census 2016 figures of almost 1.7million households in Ireland, that means 850,000 households nationwide are potentially losing out. And despite enormous savings, the most recent CRU national data also shows an actual drop in switching rates for 2020.

Only one in seven people change providers every year, and 65% of those forget to do so in year two.

Typical behaviour is to automatically continue on with the existing supplier when a contract expires.

The WeSwitchU.ie index also looks at electricity costs alone and potential savings amount to €420 for those living in Ireland’s standard three-bed semi-detached.

Annual bills range from a high of €1,200 to €780, based on 4,200kwh – the average annual electricity used in medium-sized homes.

The savings grow to €760 (€2,030 versus €1,270 per annum) for those living in bungalows and detached homes and €356 a year for apartment and terraced home residents (high of €840 against lowest €484), who typically use less electricity. ‘Based on the maximum potential savings per year, customers have the power to put €166 every month back in their pockets,’ said Mr Halpin. ‘Those who make the switch themselves benefit from the savings in their first year but need to look at the market again after that time to keep up the momentum.’

The problem with switching is that the people who need to do it most are too busy. The UK market has seen a spate of switching services come onstream that will do it for you – which would solve this problem – and we are just beginning to see that sort of service here with WeSwitchU.

‘Once you sign up with WeSwitchU.ie, you do not have to search year in, year out for better deals as we continue to pursue savings on an annual basis and do the switching for you,’ explained Mr Halpin. ‘When your contract expires, we provide a breakdown of the best deals for your needs and switch providers on your behalf. By removing the main barriers to switching – hassle and time – you are guaranteed to always be on the best rates.’

The savings are based on CSO and SEAI data for annual average electricity and gas usage across various house types.