Since about the beginning of this century, there’s been a tidal wave of academic papers and newspaper columns analysing the psychological cost of the “fear of missing out”. We all have a dash of Fomo (as it’s more often known nowadays) when we scroll through social media and see the supposedly fabulous time other people are having while we’re stuck at home. It’s easy to get a similar pang of remorse when you see ads for cheap and efficient energy providers while you’re saddled with high tariffs on your gas and electricity.
Unlike social Fomo, however, it’s much easier to put these feelings to rest. Switching energy providers can actually be as simple as ordering a takeaway, and if you sign up to Compare the Market’s EnergyCheck service, AutoSergei will do all the legwork for you – scoping out the latest deals, taking exit fees into consideration, and alerting you once a month if you could be saving money.
Here’s the full lowdown on how switching energy providers works …
Is switching really worth the hassle?
The short answer is yes. There’s no doubt that the thought of switching energy providers can be daunting, but whether you’re looking to save money, get better customer service or switch to a green energy supplier, with more than 60 active suppliers competing in the market (according to Ofgem), there’s a good chance you could find what you’re looking for.
And when it comes to monetary savings, the numbers are pretty impressive. Where a saving can be achieved, 20% of people could save £475 on their dual fuel energy costs – based on Compare the Market data in February 2019. What’s more, if you switch through them you also get the tasty added bonus of a whole year of Meerkat Meals and Meerkat Movies.
How to get started ...
So you’ve decided you want to switch – what next? Well, the best way to prepare for a switch is to make a note of the ins and outs of the deal you’re currently on (all of which can be found on a recent energy bill). You’ll need:
The name of your current energy supplier(s).
The name of the tariff(s) you’re on.
Whether you have an Economy 7 meter.
How much you’re paying them or what your usage is.
This, along with some basic personal information, is enough to get you started on Compare the Market’s price comparison tool. After a few user-friendly online forms, you’ll be presented with a list of recommended tariffs that spell out the costs of these alternative tariffs and how much you could be saving on your energy bills, as well as some handy background information on the suppliers – including their overall supplier ratings.
Here’s the deal with tariffs ...
When it comes to energy deals, there are three key things it is useful for you to understand: dual fuel, fixed rate and variable rate.
Dual-fuel deals – where you get gas and electricity from the same provider – often work out cheaper than gas-only or electricity-only tariffs. At the very least they simplify your life admin, as you only have to deal with one bill from one supplier, rather than two.
Fixed-rate energy tariffs ensure that you pay the same amount for each unit of energy – measured in kilowatt hours (kWh) – throughout the term of your contract. This doesn’t automatically ensure your bills will be low – the more kWhs you burn through, the more you’ll pay – but it gives you the security of knowing the rate you pay per unit used won’t increase for a set period.
Variable-rate tariffs, conversely, see bills go up and down depending on the prevailing energy rate at any given time, a little bit like the stock market. Although you won’t have the stability a fixed-rate tariff offers, you could save money if wholesale energy prices drop, as suppliers can pass these savings on in their retail prices. You also won’t be locked into a contract, so, if a better deal with another provider arises, you’re free to walk away without the threat of exit fees.
How does switching actually work?
Well the good news is, switching energy providers is far less stressful or time intensive than you’d imagine.
Why?
Because once you’ve decided to switch from one supplier to another it’s actually the providers, not you, who take care of all the nitty-gritty details. The whole process is usually concluded in about three weeks, and if you change your mind at any point there’s a legally mandated 14-day cooling off period in which you can switch back. See – simples!
Download the Meerkat app and set up EnergyCheck so you’ll never have to spend time searching for better energy deals again. Customers of Compare the Market can also use the app to get two-for-one at restaurants and cinemas for a whole year. T&Cs apply
