Martin Lewis warns millions of households need to switch energy supplier now
The MoneySavingExpert has warned that the cheapest fixed-rate tariff is already £138 more expensive than it was a month ago - and prices could still go up
MARTIN Lewis has warned that millions of households need to switch energy providers now or risk forking out another £220 a year on your bills.
In a new blog post, the MoneySavingExpert is urging customers on expensive Standard Variable Rates (SVR) and default deals with the Big Six energy companies to find a cheaper deal elsewhere.
He also warned that the cheapest fixed-rate tariff is already £138 more expensive than it was a month ago.
At the beginning of September, households could lock in to a cheap fix-rate deal for £867 a year but now that’s shot up to £1,005 a year.
The consumer champion said that the 16 per cent monthly price rise was “unprecedented”.
He wrote: “Let me be blunt. It’s too late to bag this winter’s cheapest energy deals.
“We’ve constantly nagged about cheap switcher tariffs being pulled, mostly on the back of big oil price rises.”
How to switch suppliers and save
SWITCHING suppliers is the best way you can cut your energy bills. Here's what you need to do.
1. Shop around – If you’re on an expensive Standard Variable Tariff (SVT) deal you are throwing away up to £300 a year. Use a comparison site like MoneySuperMarket.com or EnergyHelpline.com to see what best deals are available to you.
The cheapest deals are usually found online and are fixed deals – meaning you’ll pay a fixed amount usually for 12 months.
2. Switch – When you’ve found one, all you have to do is contact the new supplier.
It helps to have the following information to hand – which you can find on your bill – 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.
For more advice read our guide on how to switch.
Bill payers also shouldn’t rely on Ofgem’s price cap which will be introduced in December to bring down their energy costs.
Even though it will see dual fuel bills from the Big Six – British Gas, EDF Engery, E.ON, Npower, Scottish Power and SSE – drop from around £1,220 to £1,136 it’s still not the best rate on the market.
The cap will be updated every April and October so there is still a chance that your bills could continue to creep upwards.
And of course, if you use more energy than the cap then your bills will cost you more.
Since the cap was announced in September, wholesale prices have rocketed meaning that more price hikes from some providers could still be yet to come.
Is it safe to switch to a small energy supplier?
FED-UP with sky high energy prices and poor customer service from the Big Six energy firms? Then you could save a packet by switching to a smaller firm.
Recent research from Which? found customers with smaller and medium sized firms, such as Utility Warehouse, Flow Energy and Octopus Energy are much happier than those with the major firms.
The biggest risk of choosing a small provider is that it goes bust.
But remember that if the firm does go under you won’t be cut off, and Ofgem will try and get a new supplier in place as quickly as it can.
Once it has done this, the new firm will contact you. It doesn’t have to honour the deal you were on with the defunct firm – but under Ofgem rules any credit you have on your account is protected.
If you’re unhappy with the new supplier’s offer you are free to shop around for a new deal and switch – you won’t have to pay any exit fees to leave.
This is why households are better off locking in to a cheaper, fixed-rate deal now before prices go up.
But it might not be worth switching to a deal that’s longer than a year after consumer group Which? found that longer-term fixed energy deals can costs HUNDREDS of pounds extra per year.
If you’re already on a fixed-rate deal and you’ve found a cheaper one elsewhere, you’re likely to have to pay for an early exit fee.
It is also not worth it if the cost of leaving your contract early outweighs how much you’d be saving if you switch.
You’re better off waiting until your contract ends and moving deals before you’re rolled on to an SVR.
But despite the benefits of switching supplier, more than nine million households didn’t change provider once between 2012 and 2017, costing them more than £1,500 over the five years.
Ofgem – the energy regulator – has opened investigations into First Utility, Ovo Energy and Utilita, over their “poor complaints handling”. Here’s how to get your complaint sorted.
Here’s how you can save cash on your electricity bills by cutting your usage with these simple steps.
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