24th September 2014
Britons could cut bills by a quarter by switching for the first time with households losing out by £323 a year by remaining with traditional energy supplier according to calculations from MoneySuperMarket.
The comparison site says that bill payers in the Midlands can save the most by switching while challenger firm Extra Energy offers the cheapest bills in 13 of 14 regions for those who’ve never switched before.
The website compared average annual bills of quarterly cash/cheque (QCC) customers who have stuck with the traditional energy supplier for the region they live in compared with the best priced tariff currently on the market.
Those living in the Midlands would benefit from the biggest savings – cutting 28 per cent – or £368 from the annual cost by moving to the cheapest tariff in their area from Extra Energy.
The firm’s Fresh Fixed October 2015 v2 tariff also offers the cheapest deal to households in 13 of the UK’s 14 energy regions. However, energy customers living in North Wales & Liverpool who have never switched should look to Sainsbury’s Energy Fixed Price October 2015 for the best deal – a saving of 22 per cent, or £299.
Stephen Murray, Energy Expert at MoneySuperMarket said: “The message here is clear and simple– loyalty doesn’t pay, and households need to act to reduce the cost of their energy bill. Anyone who is still a standard energy customer of a traditional energy supplier for their region is missing out on hundreds of pounds worth of savings. Customers have the power to change energy tariffs and suppliers and they need to embrace it to potentially cut the cost of their bills by a quarter. By using our comparison tool, you can ensure that you’re paying as little as possible for your energy.”
The research also found that households paying for their energy via monthly direct debit (MDD) who are still with their traditional supplier, also stand to save if they switch. The same Extra Energy tariff also offers MDD switchers the best deal in 13 out of 14 regions , with bill payers in the Midlands standing to save the most – 23 per cent or, £284.
Murray adds: “When comparing tariffs, one thing to be aware of is that the best deals are fixed and therefore are likely to come with an exit fee if you try to leave before the end date. If you want more freedom to switch, consider EDF Energy’s Blue+ Price Promise March 2016 tariff with an average bill of £1,039. This product will not charge you if you choose to switch again before its end date and is the cheapest tariff on offer from the ‘Big 6’.”
1 Incumbent vs Best Tariff Potential Saving (%)
Based on medium usage consumption users paying via quarterly cash/cheque (QCC)
2 Incumbent vs Best Tariff Potential Saving (%)
Based on medium usage consumption users paying via monthly direct debit (MDD)