Energy is expensive – the average available variable tariff is around £1,206 per year**. But the government is hoping that the publication of energy supplier league tables will spur on the switching revolution and get people saving money on their supply.
Whilst we all know that switching supplier is a good way of reducing your costs, without a direct comparison of what other deals are out there, it can feel like an uphill task. So, the league table (published by industry regulator, Ofgem), will show the average energy bill paid by someone on a ‘standard variable tariff’ compared to deals from the ten cheapest suppliers. It’s great news, as it means that we will all have greater visibility of the best deals.
Millions of energy users are currently on their supplier’s standard variable tariff, which is typically the most expensive rate to be on. It’s essentially a supplier’s default tariff; and you can find yourself on it if your previous tariff has expired or if you’ve simply not chosen a particular plan to be on. Standard variable rates never expire so you could find yourself paying over the odds for your energy, for a considerable amount of time before you switch or choose a different tariff.
Along with the transparency of the new energy supplier league table, the government is also calling for more evidence of individual energy use so that customers can make good decisions about how they use their energy and who supplies it.
In order to do this, a household’s energy consumption would be fed into software that then searches for the best deal available based on exact usage. Customers would eventually also be able to switch supplier there and then based on the findings. It all sounds very technical but the data would be input (with consent – naturally) via an easy to use app or website. The beauty of this would be accurate comparisons determined by real-life figures rather than guesswork. At the moment this is still in consultation phase, but it’s safe to say that this would give customers a huge boost in taking control of their energy supply and expenditure.
Of course, saving money on your energy is something we can all do right now rather than waiting for fancy apps to upload our data. Because comparing and switching is easy when you use our energy comparison service us – we’ll ask you some questions (it’s helpful if you have your last bill to hand) and then we’ll take it from there. No fuss, no effort and it's probably worth knowing that on average you could save yourself around £355** - so what are you waiting for?
*Based on OFGEM Bills, prices and profits data for an average of dual fuel, direct debit and available paper tariffs from the six large suppliers at September 2018.
**Where a saving can be achieved 50% of people could achieve a saving of £355 on their dual fuel energy costs based on Compare the Market data in September 2018.