HOW TO SAVE £100s WITH CHEAP GAS AND ELECTRICITY
With nearly a quarter of Brits admitting they have never checked to see if they are paying too much for their energy its easy to see why millions of pounds are being spent each year unnecessarily.
Statistics provided by industry regular OFGEM suggest around 11 million households (about 54% of customers) are still on expensive, standard tariffs . . . are you one of these?
For those who have made the switch though, average savings amount to around £400 or as high as £700+ for people moving from utility warehouse deals.
So if switching energy supplier is easy, and the savings add up to so much, why are so many people choosing to stay with their current supplier and pay more than they need for their energy?
Find the cheapest deal from every energy supplier in the UK.
Recent research suggests that many people mistakenly believe gas and electricity supplied to our homes is controlled by a single supplier, and these suppliers are in a position to offer the best prices.
Other people believe that the new financial caps imposed by the industry regular OFGEM mean that every energy supplier is now charging the same price.
In practice, neither of these situations are accurate, so we thought we'd dig into the facts and provide a simple explanation about who does what and why with our gas and electricity supplies.
Around 20 million homes in the UK are powered by gas [source: BEIS]. We produce enough gas in the UK to meet almost half of our needs, the rest is imported from Europe, who in turn import 57% of their gas from Norway and Russia.
Many people believe that British Gas controls the supply route into peoples homes, but this is not the case. British Gas is just one of more than 60 energy suppliers who buy and sell gas to consumers using the transmission network owned by 'National Grid Gas'.
And the best news is, every one of the energy companies wants YOUR business. This means many suppliers are happy to out-price each other in an attempt to give customers better value for money.
All you need to do is find out who they are, and that's much easier than you might think.
Unlike the gas industry, the national grid is controlled by 4 transmission companies and several Distribution Network Operators (DNO) who are licenced to distribute electricity in the UK.
DNO's own, operate and maintain the system of towers, cables and meters that bring electricity from the national transmission network into our homes — via electricity suppliers.
Electricity suppliers are also in a position to sell gas, which means when looking to the advantages of dual fuel deals, there are more than 60 suppliers to choose from.
Find the cheapest deal from more than 60 energy suppliers
What role does OFGEM play?
Energy prices are capped by the industry regulator OFGEM. This means that energy providers can't charge domestic customers more than a specific amount for their energy.
But don't be fooled! The OFGEM price cap varies depending on where you live and how much energy you use. The price cap also varies significantly depending on how you pay — and the level is up to £100 higher if you pay your bills by cash, cheque or quarterly direct debit.
Lastly, the OFGEM price cap only covers standard 'default tariffs'. Suppliers are allowed to charge higher prices for non-standard tariffs such as standard variable tariffs (SVTs) and default fixed-term deals.
Yet the most crucial point is the price cap doesn't mean energy providers can't charge less. In fact, this is where savvy buyers are saving hundreds of pounds on their energy bills each year.
On Apr 1st this year, OFGEM increased the level of the dual fuel cap to £1,254 per year when paying by Direct Debit.
Very quickly, the big six suppliers (British Gas, E.on, EDF, Npower, Scottish Power and SSE) started charging customers the maximum allowed.
Yet a quick comparison check today (Jun 24th) shows the cheapest energy supplier on a like-for-like basis is charging £873 for the same energy. That's £381 less than the big six, and this is only on one particular tariff. It's highly likely there are more significant savings to be had on different tariffs.
How long will prices be capped for?
The price cap is updated in April and October each year, but it is expected to be removed in 2020.
Households should be aware that unless the government decides to extend the price cap, then energy prices are expected to rise.
Moving to a cheaper energy supplier now will not only save you money straight away, but it should ensure your energy prices stay competitive if the cap is lifted.
How do I find the best energy prices?
Just head over to our https://www.justaskhenry.co.uk/home-energy and see how much you can save.
Our FREE price comparison and switching service compare prices from EVERY supplier in England, Scotland and Wales — not every price comparison site does this.
All It takes is 2 minutes to find the best price for your
your electricity, or
your combined gas and electricity. (Known as dual fuel.)
But isn't switching energy supplier a hassle?
That's precisely what many energy suppliers love to hear because it means they can carry on charging you the maximum amount allowed by the regulator for your energy.
What they don't want you to know, though, is switching energy provider is really simple.
In fact, all the work is done for you. Once you've used our FREE price comparison service to find the best deal, your new supplier will carry out an automatic switching service, and in most cases, you won't even need to contact your current supplier.
Your energy supplies won't be interrupted, you'll simply receive a final bill from your current provider and a welcome letter from your new supplier.
And don't forget, the entire process from checking the best prices to signing up with a new supplier takes as little 2 minutes. We even manage the switching for you completely free of charge.
Find the cheapest deal from every energy supplier in England, Scotland, and Wales