Switching suppliers could save £3.8bn

UK households could cut their annual energy bills by more than a fifth and save as much as £385 a year by switching suppliers. New research by comparison site moneysupermarket.com […]

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By Priyanka Shrestha

UK households could cut their annual energy bills by more than a fifth and save as much as £385 a year by switching suppliers.

New research by comparison site moneysupermarket.com suggests householders should switch from their traditional energy supplier to the cheapest available tariff, which could save a total of £3.8 billion for the economy.

It claims bill payers living in the North, Wales and Liverpool region have the highest average annual bills of £1,444 for their gas and electricity but suggests money can be saved.

Clare Francis, Editor-in-chief at the comparison site said: “The current cold snap has no doubt caused many households to dial up the thermostat but there is obviously a price to pay for this. Price hikes, the festive period and the cold, snow-filled weather are a perfect storm for costly bills piling more pressure on hard-pressed families. But it’s not all bad news as some of that money can be clawed back.

“Firstly, if you haven’t changed your energy deal in the past 12 months, chances are you’ll be paying more than you need so look to see if you can make savings by switching to a cheaper tariff. We recommend going for a fixed online deal as that will protect you in case we see another round of price hikes this year. If you’re currently on a fixed price plan, remember to switch when it comes to an end.”

She also suggests saving money by making simple changes such as doing the washing at 30° rather than 40° or 60° and turning appliances off as opposed to leaving them on standby.

The study claims a recent Ofgem survey showed 59% of gas customers and 60% of electricity customers have never switched suppliers, equivalent to around 12.7 million households.