Switch on to getting a better energy deal
THERE’S a hidden energy price war on. Switchers can get the cheapest prices we’ve seen in 2019. Yet most homes, have seen prices hiked, not cut recently. The only way to be an energy bill winner, not loser, is to take action.
■ The price war is only for switchers
OVER recent months, the wholesale price for energy has plummeted. So many providers have put out much cheaper deals to try and get customers to switch to them. Since January for someone on typical use, the price of the market’s cheapest deal has dropped by over £100/ yr so it’s now well under £900.
■ MOST people are on the price cap that has gone up
IN April, the price cap for 11m people on standard tariffs jumped by an average 10%, a rise of £100/year for those with typical usage, meaning they now pay £1,254/year, and it will remain unmoved until October.
■ IT only takes five minutes to find your cheapest
YOUR cheapest depends on where you live and how much you use, so to find your winner use a comparison site. My moneysavingexpert.com/ cheapenergyclub also gives extra cashback if it can switch you, and by default includes the whole market’s tariffs. Also, Ofgem.gov.uk has a list of approved sites.
■ DON’T just go for the cheapest
GENERALLY, the cheapest providers are new firms you won’t have heard of with possibly little financial backing (hence nine going bust within the last year). So scroll down a little to find more reliability and still make huge savings.
■ LESS changes than you think when you switch
IT’S the same gas, same electricity, same pipes, same safety, only the customer service and the price changes.
■ GO green too…
MANY of the best mid-sized energy firms have been around for a while, and have some cheap green tariffs as a way to bring in new sections of the market. Even if you do go green, the gas and electricity coming into your house won’t be, as that comes from the nationwide network. So what do the green options really mean?
■ 100% renewable electricity
YOUR supplier will buy enough renewable energy (hydro, solar, wave or wind power that do not deplete the Earth’s resources) to match your use, so the net effect of you using a 100% renewable supplier is as if all your energy was renewable.
■ 100% green gas
THIS comes in two types. Firstly, there’s renewable gas (from anaerobic digestion). But it’s rare to have even 10% renewable gas, let alone 100%. Like with electricity, your gas won’t all be green, but your supplier will put the amount you use back into the network as renewable gas. Carbon offsetting, isn’t actually renewable. Firms simply ‘offset’ the effect of ‘dirty’ gas by paying to plant more trees, which is intended to have the same positive effect as your usage has a negative effect.
Bigger names that have good customer service records and some green tariffs include Octopus and Bulb and both can typically save people over £250/ year.
■ Martin Lewis is the Founder and Chair of Moneysavingexpert.com. Get his free Money Tips weekly email at money savingexpert.com/latesttip