If you’re tired of paying high prices for energy, switching energy providers is one of the easiest and most affordable changes you can make. Before you switch energy companies, however, there are several things you need to be aware of. In order to help you get a good-value new plan, we compiled a quick guide that explains what you need to know about the switchover process as well as the best way to avoid expensive mistakes during the switch. Why should switch energy companies?
Switch to save
There are numerous advantages to switching energy providers, particularly in light of recent news concerning rising energy prices. Moving to a green energy provider is especially important if you currently use an exceptionally high number of energy-using appliances in your home or have plans to soon do so. As a rule, it’s better to pay more every month, even when you’re only changing a supplier, than to pay too much for your energy use and not be able to keep up with your current tariff.
Before you begin looking into the possibility of switching energy providers, it’s a good idea to consider your current tariff and whether it would be better to switch. The cost of electricity is based upon your usage, both now and in the future. When you sign up with an energy company, your electricity suppliers agree to guarantee them a certain amount of gas or electricity (generally at a fixed rate) at a certain price on a set schedule. This means that if you choose to cancel your contract early, or are no longer using any gas or electricity from your gas or electricity suppliers, you may be subject to additional charges. While switching energy providers can generally save you money, they can also increase your bills as these energy companies must raise their prices to cover your new supplier.
Finding the energy to switch
Many energy companies offer discounts to customers who choose to change their tariffs, but there is often a penalty if the contract is extended. While switching energy providers is cheaper in the short term, extending your contract may leave you paying more in the long term should you need to switch, due to higher usage. On top of this, gas and electricity retailers often charge exit fees when customers sign a contract. These exit fees can sometimes reach several hundred dollars, making it impractical to cancel your contract before it expires. However, the costs of switching energy providers and signing contracts with existing energy companies are not reflected in your regular utility bill, so you’ll still be billed for what you use.
Many people mistakenly think that the amount they’ll have to pay to leave the current gas or electricity provider will make switching energy provider’s a bad idea. In fact, even when you’re required to pay an exit fee, you may find that your monthly energy bills are lower once you’ve left your service. Exiting energy services is usually a much bigger hassle than signing up to a new contract, but it is a necessity for most consumers. In fact, over 70% of UK households have failed to cancel their contracts after they’ve crossed the agreed exit fee.
If you’re thinking about changing energy suppliers, then it’s likely that you want to save money. However, switching energy providers without getting a good price and knowing the impact on your monthly bills is probably a mistake. Take the time to shop around online for the best deals and compare them against your current provider to ensure you’re getting the best deal for your money. The cost of changing energy suppliers online is much lower than running up large bills, which is why many people are making the change to save money and find better deals online.