Consumers Save £250 A Year By Switching Electricity Providers
- Record numbers switched suppliers last year
- Average savings of £250 per household
- Smaller providers can be better value
- Open Banking set to make switching easier
A record five and a half million people switched electricity supplier last year, and made an average saving of £250.
Energy UK, who carried out the study, said this was a 15% increase on the 2016 figures, and that 400,000 switched suppliers just in December.
28% of those who switched moved to smaller providers, instead of sticking with one of the ‘big six’- British Gas, EDF, npower, EON, Scottish Power, SSE.
Lawrence Slade, chief executive of Energy UK, said, “It is tremendous to see switching surpassing all expectations during 2017.
“Every year, more and more customers are seeking out a better deal, and potentially saving themselves hundreds of pounds a year.
“I would encourage all customers to spend a few minutes checking the deal they are on.
“You could save a lot of money on your current energy bill, even if you stick with your existing provider.”
These figures still represent less than 20% of households in the UK, but those who have switched have shown that it is better to take energy matters into your own hands.
One way which will help consumers to save is with Open Banking, which is being introduced on Saturday.
Open Banking will let you see all your financial information in one place, and share in with energy providers so they can compete to give you the best deal.
About 12 million UK households are still on expensive uncapped standard variable tariffs.
With this type of tariff, the price you pay per unit of energy isn’t fixed, so you can end up paying far more than others if energy prices rise, and prices can hugely vary between companies.
A 2016 report from the Competition and Markets Authority warned that these type of tariffs are contributing to £1.4 billion in excess profits to energy companies.
Plans for a universal price cap were announced in the Conservative Party’s manifesto last year, before the General Election.
Since then, Theresa May has passed the responsibility to Ofgem, which has been widely criticised for a lack of progress.
Managing energy bills is one great way to save money in the New Year, and it’s easier than you’d think to switch.
How to switch:
If you decide to get Open Banking, you’ll be able to switch by sending your financial information to different energy suppliers, and they will give you a personalised quote based on this.
If you’d rather not share your information with a third party, then using price comparison sites to compare deals is the best way to switch, although you should use more than one site to make sure you see all the deals out there.
For more money saving advice, like how you can cut down on prescription costs, head to LatestDeals.co.uk