Advertisement
Christmas Special - Get your first 12 issues for just £12
SUBSCRIBE
Money

Switch it up: Save hundreds on your energy bills

Consumers urged to change energy suppliers and potentially save hundreds of pounds a year

As turbulence hits the energy market, with two small energy firms going bust before Christmas and Money Saving Expert Martin Lewis predicting “up to 30” more could be at risk, consumers are being urged not to fear switching their supplier.

GB Energy and Open Electric shut down shortly before Christmas, affecting more than 160,000 customers, with industry experts saying rising wholesale prices, low fixed-rate tariffs and a cold snap were leading to increased demand, which created a ‘perfect storm’ that smaller firms could not weather.

A recent national survey has found that 45 per cent of Brits have never switched energy provider

Mark Todd, co-founder of switching site Energy Helpline, acknowledged that 30 companies may be “potentially vulnerable” to closure this winter, mostly because of rising international wholesale prices. Energy Helpline expects these wholesale price increases to be passed on to consumers in the form of an average five per cent price hike in 2017.

But he said “no one needs to be scared” of switching provider because of the protection regulator Ofgem offers. “If an energy customer switches from their default option to their cheapest deal the average saving is £337 a year, enough to take most out of fuel poverty,” said Todd.

A recent national survey has found that 45 per cent of Brits have never switched energy provider. A quarter of respondents to this month’s Gocompare Energy survey said the process of changing seemed too complicated.

The Scottish Government is attempting to make it easier for Scots to make the switch. The Home Energy Scotland team is offering impartial money-saving advice, and can connect households north of the border with Citrus Energy to help search the market for the best gas and electricity rates.

Advertisement
Advertisement

The Scottish Government is offering interest-free loans towards the cost of making energy efficiency improvements, such as double-glazing or boiler replacements, and is also offering to top this up with a grant covering 25 per cent of the cost.

Many local authorities in England and Wales have set up schemes to help residents find the cheapest rates by sharing current fuel bill information online. The Big London Energy Switch, run by 23 councils in the capital, has encouraged providers to compete to offer the cheapest rates to residents who have signed up to the scheme.

Which? has warned of the financial cost of doing nothing. The consumer group said more than half of the fixed-price energy deals that ended in December would leave consumers at least £250 worse off in 2017 if they don’t take action to find a replacement deal.

Advertisement

Change a vendor's life this Christmas

This Christmas, 3.8 million people across the UK will be facing extreme poverty. Thousands of those struggling will turn to selling the Big Issue as a vital source of income - they need your support to earn and lift themselves out of poverty.

Recommended for you

View all
Easy hacks for books and apps that every student should know
Student Life 2024

Easy hacks for books and apps that every student should know

How to live your best student life without breaking the bank. No, seriously
Student Life 2024

How to live your best student life without breaking the bank. No, seriously

How to navigate the new social world of university life – no matter your background
Student Life 2024

How to navigate the new social world of university life – no matter your background

Dear students: Here's how to get smart about money and save yourself stress later on
Student Life 2024

Dear students: Here's how to get smart about money and save yourself stress later on

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know