The "big six" energy firms who dominate the UK gas and electricity market have all announced price rises. So now's a good time to compare prices and switch to a cheaper supplier.
Here's what you need to ask before making the move.
When is the ‘best time’ to switch?
The best time to switch is when energy suppliers have all announced their price rises and in September, EDF became the last of the ‘big six’ energy companies to announce price hikes. (See the hikes explained clearly here.)
Now the major energy suppliers have shown their cards and raised prices, customers will see gas bills rise by up to 19 per cent and electricity up to 16 per cent depending on their provider.
This will bring the "average household energy bill to almost £1,300 a year", according to Mike O’Connor from watchdog Consumer Focus.
But with all of the big six firms who dominate the UK energy market now having announced price rises, this makes it easier to compare costs and switching can save you over £400* a year.
How can I check if I’m on the best deal?
There’s no ‘one size fits all’ energy deal so check a Consumer Focus accredit price comparison site such as Confused.com to find the cheapest supplier for you. It’s also worth asking your current supplier if it can suggest a more competitive package.
If you’re faced with one of the few energy companies who still carry out doorstep selling - E.ON, ScottishPower and nPower - don’t take their figures at face value, as research from Consumer Focus shows thousands of customers have actually been persuaded into more expensive deals this way.
Most companies have different rates for gas and electricity depending on how much you use, so get out last year’s bills, check your exact usage and put these details into price comparison websites.
Switching to a dual fuel tariff where your take both gas and electricity from the same supplier can save money too.
A fixed or capped tariff may be worth considering if you’re on a tight budget as this means you’ll escape future price rises for the length of the contract.
These tariffs can cost slightly more per unit of gas and electricity because of their price protection guarantee but they do provide peace of mind if you’re worried about future price hikes.
How will switching affect my bill?
Gas and electricity all comes from the same place so switching suppliers simply means a different company sending out your bill but potentially at a better price.
If you opt for an online tariff this is even more likely to be the case as they tend to be the cheapest. Of course, these tariffs typically require you to manage your account online so you may have to forgo a paper bill to get the best price.
While you can easily download your bills and print them off, this option may not suit you if you prefer paper bills, so do check your tariff before singing up.
Will I be charged for switching?
Some tariffs have minimum terms, typically 12 months, so check the small print of your existing deal first. If you leave within this period you may be charged an exit fee, which is typically around £20 per fuel.
But if your supplier raises prices during your contract term, energy regulator Ofgem says you can switch without having to pay an exit fee. And your supplier has to tell you about any price rise at least 30 days in advance to give you time to switch.
Are there any freebies or incentives to switch?
While this shouldn’t be the most important factor in your decision to switch, if you have two comparable deals on the table then it’s worth checking if either offers any extras such as energy saving monitors or cashback.
Do read the small print before signing up as you may need to stick with the company for a fixed time before qualifying for any bonus.
Energy best buys
If you are wondering whether another supplier could offer you a better deal on your gas and electricity bills, we've put together this handy table below.
It shows the cheapest dual fuel tariffs, for a medium energy user, paying by direct debit, as at 21 December 2011**.
*10% of customers who switched gas & electricity (dual fuel) with Confused.com saved at least £400.41 (Nov 2010 - April 2011), with 97 per cent of switching customers achieving a saving.
**Average annual UK bill, based on a medium energy user, defined by energy regulator Ofgem as using 16,500 units of gas and 3,300 units of electricity a year.
