Energy providers are regularly hiking their prices up, meaning households across the country face unwanted rises in the cost of their bills. Switching energy supplier could save you hundreds of pounds a year, as the cheapest tariffs are usually offered to new customers. So far this year, around four million households have switched energy supplier – a 6% increase on this time last year. But with over 27 million households across the UK, this is only a very small fraction of the population benefitting from switching. So why should you switch?
Keep Control of your Credit Score
Switching energy suppliers could make your bills much more affordable and stop you falling behind with repayments. Around three million people in the UK were in debt on at least one household bill last year, which can be hugely detrimental to your credit score. When this is negatively affected, it can restrict your ability to get mortgages, credit cards, new mobile phone contracts and various other finance options.
Take Advantage of Offers and Freebies
Energy companies will often offer new customers rewards and freebies for switching to them. This can be anything from high street vouchers and the latest tech gadgets, to free smart heating control systems often worth around £300. Smart thermostats link to a box installed inside your boiler to let you manage your heating system via an app on your smart device.
These systems are great if you forget to turn off your heating and are away for a few days – as you can turn it off and on remotely – saving energy and money. It may be worth switching to take advantage of these offers, particularly if you are already looking to upgrade your heating system as it will save you money on both the product and installation. But make sure that the tariff you are switching to offers better value than your current one to make the switch worthwhile.
Increase your Disposable Income
We are all looking for ways to boost our disposable income and switching providers is almost certain to save you money. We wouldn’t stay on the same phone contract for years on end if another network provider was offering a massively reduced rate, so why stick with an expensive energy tariff?
Ofgem, the energy regulator, states that the average annual saving from switching is £300 – over 10 years that’s a massive saving of £3,000! Regularly comparing energy offers across the market will highlight where you can cut your bill costs. Use comparison sites to check the best deal for you and your current energy usage – it should only take five minutes.
There is no doubt that switching could benefit your bank account and the process is fairly straightforward. There are several factors to consider before you make the move, including the tariff cost, energy efficiency, customer reviews, exit fees, exclusive offers and freebies. Do some research, make sure the deal is right for you and get switching to free up your finances.