Yahoo Finance How to switch energy provider and get the best bang for your buck
Millions are facing a huge spike in energy bills from September after British Gas announced a 12.5% rise in electricity prices. With the company facing criticism for making the decision to hike prices despite benefiting from falling costs, unhappy customers are threatening to find a new supplier.
Here’s what you need to know before you do.
How much more will British Gas customers be paying?
British Gas said the price rise will add an extra £76 to a typical annual household fuel bill, a 7.3 per cent increase that will take the average bill to £1,120 a year.
How many customers are affected?
The price hike will leave 3.1 million households forced to fork out more for monthly bills.
MORE: British Gas hikes bills for millions despite price freeze pushing company costs down
Are there any British Gas customers who won’t be affected?
The company said it would provide credit to help protect more than 200,000 vulnerable customers from the increase. Customers using a pre-payment meter will also not be affected.
Why are they increasing prices?
British Gas owner Centrica claim the rise “reflects an underlying increase in policy and transmission costs”. They’re blaming wholesale prices, effectively.
But as consumer collective The Big Deal point out, costs to energy companies have actually been falling since British Gas announced their last price freeze.
Matin Lewis of MoneySavingExpert explained that this amounts to a “catch-up hike” for the company which hasn’t raised prices since 2013.
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Have other energy companies raised prices recently?
Yes. Despite political pressure and the threat of a cap on energy prices, companies including EDF, E.On, Scottish Power and nPower have all raised prices this year.
How can I find the best deal for my home?
There are a number of handy comparison sites that are accredited by energy regulator Ofgem.
Sites like uSwitch and Which? allow you to enter your details and compare the best possible deals.
What will I need to be able to choose the right deal?
If you don’t know your energy consumption details then don’t worry, the comparison sites will allow you to answer a few questions about your lifestyle to provide you with a personal estimate.
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You can then filter by things like monthly cost, whether the plan has a cancellation fee or whether the price is fixed or variable.
What will change if I decide to switch?
Nothing besides the cost and the company supplying your energy should change. Unlike with television or broadband providers, you shouldn’t need to wait in for engineers or install anything new.
Lewis, of MoneySavingExpert, explains that “switching is usually no big deal.” And if you’re on the fence about whether to find a new provider after the British Gas news, his advice is unequivocal.
“Let this be a clarion call for British Gas customers (and all those on big 6 standard tariffs) – do not sit on your backside and just take this.”
