Nine out of every 10 homes in Cardiff could save money by changing their gas and electricity supplier, new research by Confused.com has found.
Annual bills would be cut by an average of £163 if each household switched to the best-value provider.
The research, carried out by Confused.com, is based on findings from the three-day Big Energy Week event held in the city’s St David’s shopping centre last month.
Big Energy Week was organised by charity Citizens Advice to offer guidance to consumers on how to cut energy bills by taking steps such as insulting homes and switching to a cheaper gas and electricity supplier.
How comparison helps
Figures collected at the Cardiff event showed that just over 93 per cent of locals were able to find a cheaper energy tariff by using Confused.com’s online price comparison service.
If these results were extended to the whole of the Cardiff area, the total annual savings would amount to more than £21 million.
Lisa Greenfield, Confused.com energy analyst, said: "We really enjoyed helping the people of Cardiff understand switching.
"We think people were genuinely surprised at how easy the process is and how much they could save.
"Although average savings were £163, Confused.com identified savings of £395 for some customers just by switching which is a fantastic result."
Other ways to keep costs under control
Greenfield offered the following tips to help ensure you are paying as little as possible for energy.
- Opt for a dual fuel tariff, which means you buy gas and electricity from the same supplier. Providers normally offer cheaper rates for dual fuel than if gas or electricity were bought separately.
- Pay by direct debit. You’re likely to be given a discount if you sign up for a direct debit. This means your whatever you owe will be automatically taken from your bank account monthly or quarterly.
- Manage your account online. Submitting meter readings and checking what you owe online may also entitle you to a further discount. It also means your bills are likely to be more accurate as they are based on your own, up-to-date readings.
Higher prices to come?
These findings come as cold weather across Europe pushes up wholesale gas prices – which British energy costs are closely linked to.
Falls in wholesale costs at the end of 2011 had led major suppliers to announce cuts in tariffs in January.
But there are now concerns that, if sub-zero temperatures persist across the Continent, higher demand could eventually lead to prices soaring once again.
However, firms in the UK said that consumers would not face higher costs immediately.
No cause for alarm
Ian Peters, managing director of energy at British Gas, said: "We know household budgets are already under pressure, and people will be worried by the cold snap and reports of record high gas prices in the wholesale market.
"British Gas customers shouldn’t be alarmed by reports of rising demand and record rises in the short-term wholesale markets.
"Because we’ve already bought the bulk of the gas our customers will need this winter, we can ensure we have enough for our customers.
"And we can protect them from spikes and sudden rises in the wholesale markets like the ones we’ve seen this week."
