What mistakes are you making while switching the energy supplier?
Switching energy suppliers and opting for cheap energy deals can save you a lot of money. Switching energy is on the rise. According to UK Power reports about 1,419,000 people switched energy suppliers in the first quarter of 2020 alone.
People switch for many reasons. You could just be tired of your current supplier. Your bills are coming unusually high. You are looking for a cheaper tariff. It could be many of these reasons. Those on a supplier’s standard energy tariff can also potentially save hundreds by going for the cheapest energy supplier best suited for their energy needs.
However, the process comes with some pitfalls. It should be hassle-free and not stressful. After all, it only takes a bit of time to make a comparison with other deals if you’ve got your latest energy bill with you. Unfortunately, most people lose out by making some easily unavoidable mistakes. Here are a few mistakes you might be making and how to avoid them!
You are mistaken about how much you will have to pay
Most comparison sites show you the estimated price you’ll have to pay based upon your last 12 months of usage. So, in the next year, if you are using less energy, you’ll be paying less than the estimate. And if you’re going to use more energy, the payments will be high. Similarly, Direct Debits can also be an issue. The Direct Debits payments are also based on these estimates and can lead you to pay more and underpayments. This is why it is important to have an estimate of the energy you are really using. One way to do this is by giving regular meter readings.
You are only opting for the big six energy suppliers
British Gas, EDF, NPower, Eon, Scottish Power and SSE are the top names when it comes to energy suppliers. However, so many small energy suppliers are planting their feet in the energy market. Depending on your needs, you don’t necessarily have to go for the big six. You could also benefit from a relatively smaller energy supplier. Why? Because they are very price competitive and your energy supply is still protected even if they go down.
However, when going for a smaller energy supplier, make sure that you’re not going for one that takes advanced direct debit payments. Many non- big energy suppliers commonly take direct debit payments on the first day you join. It helps the company’s cash flows by keeping customers’ accounts in credit. However, this could be a problem for you if you’re on a budget. Having to pay a direct debit from your old energy supplier and your new one at the same time could be hard on your wallet. That’s why it’s better to go for an energy supplier that does not have this issue.
You are not checking customer service reviews
Ignoring customer reviews can cost you dearly. Most energy services don’t have the best track record for customer service. The last thing you want is to have an issue and nobody is there to tend to you. The ordeal can be quite frustrating. That’s why it’s better for you to go for an energy supplier that has stellar customer service reviews even if it means you have to pay a few extra bucks. However, if you never feel the need to contact them, then a supplier that offers cheap energy tariffs but has poor customer service won’t be an issue for you.
Not making comparisons the right way
Comparing energy deals should be simple. You shouldn’t be spending more than 15 minutes on comparing several energy deals. As long as you have your gas and electricity bills for the last 12 months, you’re good to go. Obsessing over different prices per kilowatt and over stressing yourself with it will do you no good.
Some people also make the mistake of comparing energy deals and switching earlier than they need to. Usually, comparison sites give you an estimate of what you will be paying in the next year. It’s basically a mix of your current fixed deal and a standard rate that you’ll pay when your deal finishes. That standard rate is also considerably more expensive. So, it seems that were you to switch earlier, you won’t have to pay the higher variable rate. It makes you think you will save more money than you actually will. This whole comparison is awry and would cost you more if prices were to increase.
You’re switching at the wrong time
Sometimes, you can make a switch and be happy with your predicted savings but later be informed that the energy supplier is increasing your tariff rate or your direct debit. This seems unfair!
Even though a fixed tariff means your tariff rate will not change, you’ll be paying a higher rate than what you will for a variable tariff. For a variable tariff, you usually do not have to pay an exit fee and even though it can change any time, your supplier has to give you a 30 days notice period. This prior notice can help you switch to a cheaper tariff.
Which is why switching at the right time is important. Usually, most energy suppliers increase their prices in the same period. So, waiting for things to settle down and then making an informed switch will help you a great deal.
Your energy pricing comparison is not comprehensive
Yes, while comparing energy deals itself is a simple task, it needs to be done properly if you want to get your hands on the best deals. The only way to ensure you have the cheapest energy supplier is to make a comprehensive energy pricing comparison. One way to do this is by using efficient energy price comparison sites. These sites can help you compare the widest range for tariffs and get you the most cost-effective deal.
Luckily, our professionals at Bill-Switchers can help you find the best energy deals and save a lot of money. Our large database ensures that you get the cheapest quotes. All you have to do is fill a ten-second form and leave the rest to us. You can also book a consultation so our experts can guide you through the process and make sure you aren’t making any of the above-mentioned mistakes. So, get ready to make a better change for your household right now!
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