How you could save HUNDREDS of pounds a year by switching energy supplier – but should you opt for a fixed deal?
Millions of British Gas customers to be hit with 12.5 per cent price hike from today
A TYPICAL household is throwing away around £300 a year by failing to switch energy suppliers.
That's the verdict of price comparison website, , which has labelled today the most expensive day of the year for British energy customers.
Some 3.1 million British Gas customers will see their electricity prices rocket by 12.5 per cent.
It means a household on its standard dual fuel tariff will face paying an extra £76 a year.
The comparison website found the average yearly cost of a standard variable tariff (SVT) deal with one of the UK's big six providers is £1,151.
But the average cost of the top 20 deals on the market currently is just £855 - an eye-watering saving of £296.
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Stephen Murray, energy expert at MoneySuperMarket, said: “The British Gas price increase is the latest in a long line of blows to consumers that languish on standard variable tariffs.
"These customers will continue to be impacted by price increases unless they move to a competitive, fixed-rate tariff.
"During 2017 all of the big six energy suppliers have increased their prices – so it’s no wonder households are getting frustrated.
"As we approach winter, consumers need to take matters into their own hands and switch their energy supplier immediately."
What to do if your bills have gone up?
If you are struggling with today's price hike or with your energy bills generally, the best thing you can do is switch.
Figures released this week from Energy UK show more than 400,000 customers have switched their supplier in August to take advantage of the best deals on the market.
But MoneySuperMarket estimates that around 70 per cent of households are still on expensive SVT deals from the largest providers.
How to switch
Switching is fairly simple.
Use a price comparison website to find the cheapest deal - what one you'll get depends on the area you live in and your usage.
When you've found one, all you have to do is contact the new supplier.
It helps to have the following information - which you can find on your bill - to hand to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
Price hike: Why British Gas is putting up its prices
BRITISH Gas announced it was raising its electricity prices by 12.5 per cent in August.
The energy giant said the move was due to "transmission costs" and appeared to place part of the blame on government energy policy.
That was denied by the Department for Business, Energy and Industrial Strategy. It said government policy costs only made up a "small amount of household bills" and it "could not explain the price rises."
The move also provoked fury from consumer groups, with MoneySavingExpert's Martin Lewis calling on customers to "not just sit on their backsides and take this" and find a better deal.
British Gas was the last of the big six energy companies to raise its prices in 2017.
Should I go for a fixed-term or a standard variable tariff?
Generally, fixed-term deals from smaller, new suppliers will be the cheapest option.
If you want to protect yourself from any forthcoming price rises, then it's best to tie-in to a fixed-deal now
OneSelect's one year fixed deal will typically cost £824, the .
But it's worth taking into account customer service as sometimes the small suppliers may not perform as well as their low price.
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