Whether you’ve been with your energy supplier for three years or ten years, you are probably overpaying for their services. After a few years most energy suppliers up the bill without even telling you. You are likely paying a lot more than your original rate without even knowing it. People are starting to realize this and moving from one supplier to another to get the better deal. It is also due to the large number of new energy companies popping up and offering better alternatives to the traditional Big Six energy companies who have historically dominated the market. Customers are realizing there is no need for this. You don’t have to pay more than you should. Some people are afraid to navigate the market and find the cheaper deal, but this is getting easier all the time.
Where to Begin
If you are even considering switching energy suppliers, you should start by calling your company and asking for a breakdown of the bill. You can also do this by analyzing your bill and seeing how much you pay for each thing. Most households are paying too much for the energy use. You may even be paying for energy you don’t use. Considering that people around the UK are paying too much for electricity, it is no surprise that almost six and a half million customers switched their energy supplier in 2019, breaking a record that was just set in 2018.
Finding a New Provider
When you have decided you are going to switch, the next step is finding who you are going to switch to. Nowadays there are many options in the UK’s market. You should start by calling around. Don’t be afraid to ask about any promotional deals they have going on. According to the website MoneyPug a platform used to switch energy supplier, some electricity suppliers will even offer you a deal for switching over from your current provider. This can make switching very enticing, but don’t forget to do your homework. Finding the best possible rate will save you in the long run. Typically customers are switching from a large company to a medium or small energy provider.
The Stats of People Switching
A nine percent increase in households switching suppliers last year. Small and medium companies are benefiting from this, they have gained many customers despite the growth slowing. The collapse of several small suppliers may have contributed to this. People switching has doubled since 2014, the year that over 3 million customers switched. The number has gradually increased over the past five years with April 2019 alone seeing 660,000 customers finding new providers, the highest month on record. More than a half a million customers switch every month on average.
Small suppliers have gained 1.5 more customers than they lost to larger companies. Only seven percent of people switching electricity were from small or medium suppliers to large ones. However, this increased in the last year of 2019, when it was at 18 percent. According to Ofgem, 53 percent of domestic customers were on expensive default tariffs.
What You Need to Know about the Process
After taking a look at your bills, finding your average, and calling as many companies as you can to find a better deal, you should look into the cost of customer service. It may reveal which companies have a bad reputation. Then, once you have found the right company, you will simply give them your information and they will set you up. You will probably need to tell them the current meter reading and other information. Be honest to avoid disputes and you will find the right deal for you and your home. Typically it can take about 17 days to switch your supplier, but it could take up to three weeks. You will also have on average two weeks to decide you want to change your mind.
However you look at it, if you’ve been with an energy supplier for a few years you are likely paying too much. Doing your homework will help you see what you could be paying and how much you could save. There is no reason to keep on paying too much. You may not want to make the calls but it will save you a lot of money if you do.