How ditching a Big Six energy firm could cut your bills by 22% – and here’s how you do it
Households currently on a standard tariff with one of the Big Six will see their bills go up to an average £1,131 per year
BIG Six energy customers who are on their supplier's standard tariff could get their annual bills back to prices last seen in 2008 - but only if they switch.
Customers of British Gas, SSE, Scottish Power, E.ON, Npower and EDF Energy, who are sitting on their supplier's standard variable tariff (SVT), are being urged to switch now and cut their bills by 22 per cent.
Households on an SVT with one of the Big Six are set to have their bills go up, on average, to £1,131 per year, after recently announced price rises have been applied.
Around 20million energy customers in the UK are on SVTs, which are often the most expensive deals on the market.
But according to consumer group Which?, by switching to one of the cheapest dual fuel deals on the market, Big Six customers could save themselves around £250 a year, cutting their bills by around 25 per cent.
This is based on the current average value of the Big Six SVTs in March 2017 (£1,131) compared to the average of the 10 cheapest deals on the market.
These cheaper deals are as low as energy prices were back in 2008. Since then, gas prices have increased by 25 per cent, and electricity has gone up by 22 per cent.
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The cheaper deals on the market are typically offered by smaller, lesser-known providers including IRESA Limited and Economy Energy.
IRESA Limited offers the cheapest energy deal on the market, at just £839 a year.
And while consumers might be wary of switching to a small, independent supplier, the tariffs they offer are priced very competitively.
Alex Neill of Which? said: “Far too many people are still stuck on some of the most expensive deals.
"With five of the big six set to increase their prices, consumers could save £300 a year by switching to a cheaper deal now.
“With speculation rife that the Government may introduce a price cap, it is vital the regulator ensures that any price control makes a real difference for people struggling with their bills.”
In February, Conservative MP John Penrose proposed to cap energy prices at six per cent above the firm’s cheapest deal, but Martin Lewis labelled the idea "flaccid".
The money-saving guru urged Prime Minister Theresa May to ignore the Tory MP’s call to impose a “relative price cap”, which Penrose said would protect households that did not switch supplier.
But Martin warned that in order to have a competitive switching market there must be big price differences between energy deals, otherwise there’s no incentive for consumers to switch.
How to switch energy provider
MILLIONS of households across the UK have never switched energy providers and are languishing on standard variable tariffs, which are often the most expensive around.
Around 70 per cent of people are on bog-standard expensive standard tariffs, when they should be shopping around for a cheapest deal.
If in doubt, call your provider and call other providers to ask them what their cheapest fixed tariff is.
Better still, use a comparison website, like uSwitch or MoneySupermarket to find the very best deal for you. By switching providers you could save hundreds of pounds a year.
Bear in mind that the amount you pay for your energy varies depending on where you live.
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