Over the years, energy bills have been rising constantly, gas and electricity is more expensive than ever, making it more important to cut your energy bills where possible. One of the best ways to save money on gas and electricity is by comparing tariffs through an energy comparison site. The best deals could be saving your household hundreds of pounds each year, and it’s now easier than ever to do this.
Comparing deals through an energy comparison site should only take you around 10 to 15 minutes, and it’s a lot more straightforward than you may think. Here is how to do this:
- Enter your home postcode
- Select whether you wish to compare gas, electricity or both as a dual fuel tariff
- Enter details about your existing energy supplier including your current usage (this information can be found on your latest bill)
- Compare deals from different energy suppliers
- Select the tariff that meets your needs
- Enter confirmation details such as your contact and payment information
- Press confirm – you will now be switched over within three weeks
Whether you are renting or you own your own home, you will still be able to compare energy prices and switch to a cheaper supplier as long as you are responsible for paying the bill. Millions of UK households are currently on a standard variable tariff, this is an energy provider’s most expensive rate. If you haven’t switched in a while, you may be on this and are likely paying over the odds for your gas and electricity supply.
Beat the energy price cap by switching to a fixed rate tariff
The latest energy price cap was introduced by Ofgem, the energy regulator, in April 2020. This reduced the previous cap by £17. Although this cap will reduce yearly gas and electricity bills for an estimated 15 million UK households who are on standard variable rate tariffs, this does not necessarily mean that those on this type of tariff are getting the best deal available to them. The cuts are welcome but more can be done to save money on gas and electricity bills.
Anyone who is currently on a standard variable tariff could be saving a lot more each year by making the switch to a cheaper fixed rate deal. There are a whole range of fixed rate tariffs to choose from, many of which are cheaper than the new price cap.
Furthermore, a fixed rate tariff will ensure the price you pay for your energy stays the same for the duration of your contract – most contracts for home energy are between 12 and 24 months. This will protect you against price rises in the short term. However, you should know that this does not mean your bill each month will always be the same. The amount of gas and electricity you consume will still determine how much you will have to pay. You will be locking in a fixed unit rate rather than a fluctuating one.
Why should I compare energy prices?
Comparing energy prices is one of the most effective ways your household can save money on your energy bills. By switching to a cheaper tariff and/or provider you could be saving hundreds of pounds each year.
If you were to go directly to the energy provider, you will not get a cheaper price. This is because industry regulations state that companies are unable to offer cheaper prices than the ones seen on an energy comparison site. This will be reassuring for most, as you’ll be confident knowing that the cheapest deals are on offer right in front of you.
Can a smart meter save me money too?
A smart meter will pass on the details of your current energy usage to your supplier. The meter’s display will show you how much energy you are consuming, as well as how much it will cost you at any moment in time. One of the main purposes of smart meters is to ensure your bill is as accurate as possible. The unit that is displayed may help you calculate how to reduce your own consumption. They won’t save you money automatically but they can give you the necessary data to assist you in improving your home’s energy efficiency.
Understanding my energy bills
Energy bills can contain a lot of jargon so it’s useful to be aware of what the different things mean. Here’s what you should know:
- Tariff: The name of your tariff will be shown on your bill
- Comparison rate: This will highlight how much your tariff costs, allowing you to compare the rate
- Energy consumption: How much gas or electricity you have used in kilowatt hours (kWh)
- Terms and conditions: Details about your notice period will be shown here along with current price plan conditions etc.
To summarise, comparing and switching energy suppliers is now easier than ever through the use of an online comparison site. It takes around 15 minutes and will help you save hundreds of pounds annually.