We all use energy in various household and office applications, which makes it important to get the best energy tariff that will not just save money, but also save time and have access to multiple options. In the UK alone, about 11 million households pay for energy on expensive tariffs. Most people have attributed this high cost of electricity and gas to the Big Six energy companies, namely, E.ON UK, British Gas, EDF, Scottish Power, Npower, and SSE.
These companies are well-known to be the main distributors of energy and the largest shareholders in the energy markets. Many households have concerns about these energy corporations hiking the prices of gas and electricity almost at the same time, which makes their services more expensive than the smaller energy providers.
Should I Switch Energy Providers?
If you haven’t changed your energy provider in a very long time - especially if they are one of the Big Six energy providers, then there are high chances that you are spending hundreds of pounds more than needed on energy. Switching providers helps save money up to £320 per year. Although the Office of Gas and Electricity Markets (Ofgem) energy price caps to favour energy consumers, many companies have increased tariffs as well. For this reason, the best option would be to compare energy prices and switch providers.
How Can I Switch Energy Providers?
Switching providers has never been easier than it is presently. All you need is to contact an energy consultant that will connect you to several energy providers out there. For a start, you can compare energy online with USave, a reputable energy advisor. You will be required to provide information on your postcode, current energy supplier, tariff, and rate of energy consumption. With these details, the consultant will generate a list of energy providers within your location with their energy tariffs. Once you found the ideal tariff, get in touch with the new supplier who will handle the process from there. It takes just minutes to go through this process. However, the switch will be completed within 21 days. You will also be given a cooling period of 14 to cancel your request (if you change your mind).
“What happens to my gas and electricity supply during this period?” you may ask. There is no need to worry about that as your access to energy will not be disrupted during this period.
What Type Of Tariff Can I Select?
There are three types of tariffs that are available to households, depending on their energy consumption rate and budget. They include standard variable rate tariff, fixed-rate tariff, and prepaid tariff.
Standard Variable Rate Tariff
This is the default tariff energy providers revert households to if they haven’t switched in a long time. Most new tenants in rented apartments use the standard variable rate tariff. However, it is advised that they switch to a better tariff as this happens to be the most expensive due to the change in price per unit of energy - twice a year.
Depending on your energy consumption rate, you can be protected against increased energy prices with the fixed rate tariff. However, you may not pay the same energy bill each month, as it is based on how much energy you consume. Should the prices of energy drop and you decide to quit the contract, your provider may charge an exit fee.
With this tariff, households make advance payments for electricity and gas consumption using a prepayment meter. When compared to the fixed rate tariff, the prepaid tariff may be more expensive. However, it is a great way to manage your energy consumption on a budget.