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It’s not often I write about the price of a barrel of oil. Yet, in recent weeks we saw something extraordinary happen. The US oil price went negative, they couldn’t sell it, instead they were paying to have barrels stored. Of course, the cause is obvious, the coronavirus-driven economic slump means there’s no demand, which causes prices to bottom out.
The one silver lining in this miasma of bad news is that the slump at the sumps feeds into the price we pay for gas and electricity too. It’s one of the prime reasons that we’re now seeing the cheapest prices for switchers in three years – HUGE SAVINGS are possible right now. And this isn’t just about tiddler firms, it’s about the big six wellknown names who are pumping out cheap prices too.
Don’t rely on the price cap, it’s not cheaper
The majority of UK homes are on tariffs at or near the price cap. This gives you a false sense of security. That price is capped at £100s a year more than the cheapest tariffs. If you’re on the cap, by definition you’re paying the maximum allowed for standard tariffs.
More so, the price cap only moves every six months, so it hasn’t factored in the recent drop in the oil price. For someone with typical use, the cap is currently £1,127/year (use more, your cap is higher, use less it’s lower), while the cheapest deals are less than £800/year.
That’s why EVERYONE should check their tariff and take advantage of these historically low oil prices.
It’s fine to say switch now, but if I do, won’t they just put the prices up?
No one knows what’ll happen to the market going forward. We thought Brexit caused uncertainty, coronavirus makes that look like child’s play. That’s why I would suggest you look at getting a FIXED tariff. That way, the rate you pay is locked in, for at least a year – what you actually pay depends on usage – but by locking in you get today’s historically cheap rates.
Of course that’s not to say things can’t get even cheaper – that’s always possible. But most people are paying so much more than needed, that the impact of locking in at these prices if things do get cheaper, is for most trivial, compared to not doing anything and paying massively over the odds.
How cheap do these cheap fixed tariffs go?
The typical big six standard tariff is within a pound of the £1,127/year price cap for someone with typical usage. Yet, for the same usage, the cheapest one-year-fix is £771/ year on average. That’s £360/ year cheaper with Tonik Energy. Other fixes that will typically save people on standard tariffs over £300 include, British Gas, Avro, EDF and E.ON – just to show you the range.
Though it’s important to note many of these tariffs are for new customers only, not existing. Yet, don’t worry if you were with EDF and wanted to stick with a big name, there’s E.ON or British Gas to choose, or vice versa. There are so many cheap deals, so you’ve got lots of choice.
To find YOUR cheapest deal, do a comparison
Exactly who your winner is depends on your usage and where you live, as prices vary by region. So, to find your cheapest tariff, use a comparison site. You can use my cheapenergyclub.co.uk (which also gives £25 dual fuel cashback you don’t get direct) or go to any ofgem.gov.uk approved comparison site.
Plus, some of the cheapest tariffs, especially from the big six providers like British Gas, are ONLY AVAILABLE via comparison sites. You can’t just call it up and ask for it. This also gives you the advantage of seeing how the deal stacks up for you.
These comparison sites don’t apply to Northern Ireland though, as it has different tariffs – there you’ll need the consumercouncil.org.uk tool.
Not sure of your details? Don’t let that stop you
Even if you just know your existing provider’s name you can do it. It’ll be more accurate if you have your tariff details and can plug your usage in too – the sin of inaction is usually bigger than the sin of inaccuracy. A comparison will only take minutes. Then it’s switched over in 17 days.
And if you’re worried about the practicalities of switching, very little changes. It’s the same pipes, gas, meter, safety – you don’t lose supply – the only difference is price and customer service. And no one needs to visit right now. If you need a smart meter, it will be fitted once it’s safe to do so after lockdown, and you’ll be put on a tariff for now.
If your man climaxes very quickly but nothing is physically wrong, it’ll help to explore these likely causes.