With energy prices rising, consumers are looking around for ways to keep energy bills low and find the best price for their energy.
Several of the big energy suppliers have raised their prices recently, which will have a big impact on the everyday consumer. The rise means energy customers will end up paying around 2%-6% more for their energy usage. Yup, it’s a hefty rise and will make a big difference to your monthly bills.
British Gas has increased its prices by 5.5%, N Power has increased its prices by 5.3% and EDF Energy has increased its price by 2.7%. This is, potentially, just the start of the price hikes, as more suppliers are likely to follow suit – likely starting with the remaining three ‘big six’ suppliers.
Can switching suppliers help you find the cheapest deals?
Yes, in short, it can.
Want to make sure you’re getting the best deal for your energy? At Switchcraft, we’re here to help. We’ve put together a quick guide to finding the best price for energy deals, so you can keep costs down.
Who will be affected by the price hikes?
The price hikes will affect anyone on a standard variable tariff and anyone on a fixed term contract which is about to expire.
On a standard variable plan, the amount you pay for your energy can vary depending on market fluctuations – like the current price hikes – whereas a fixed term plan locks you into a set rate, for a set period of time.
However, if your fixed term plan is about to expire, you should be aware that you’ll be moved onto a standard variable rate when it does.
Which plan should you go for?
If you’re currently on a standard variable plan or a fixed rate plan that’s about to expire, switching to a fixed rate plan with a new supplier is likely to help you save on your energy bills and find the best price for electricity and gas.
So, even with a price hike, you could be quids in.
Plus, if you switch from a big supplier to a smaller supplier, you may be able to make even bigger savings.
What’s the damage?
If you’re thinking a 2%-6% rise doesn’t sound so bad, think again. If you’re currently paying £85 month for a medium usage property, this could go up to as much as £90, which means you’ll be paying around an extra £60 a year.
Your best bet, to find the best price for cheap energy, is to switch.
How can switching suppliers help?
The smartest way to find the best price for electricity and gas is to switch supplier.
Switching supplier means you can escape the expensive standard variable plan your energy supplier likely moved you to once your initial fixed term plan expired and find a cheaper fixed term plan with a new supplier.
How does this work? Energy suppliers keep the best deals for new customers. So, once your ‘new customer deal’ (or fixed term plan) expires, customers are normally moved onto a more expensive standard variable plan.
To make sure you get the best price for energy deals, every time your ‘new customer deal’ (or fixed term plan) expires, you should shop around for a new one.
Cheap energy switching is the best way to keep your monthly bills down and get the best deal for your energy.
Constant switching sounds like a hassle, though, right?
If you’re on a fixed term plan now and are locked into a good rate, it might be worth staying where you are and waiting until your plan expires to switch. But it you’re on a standard variable plan, your best move is to switch now to avoid the price hikes.
Should you opt for a smaller supplier?
While the big energy suppliers have hiked their prices, there are still some good deals to be had with smaller suppliers.
Smaller suppliers often have fewer frills, so can keep costs for the consumer down. Smaller suppliers are also exempt from some green taxes, which can add up to £50 onto each bill for the bigger suppliers.
And the idea of switching to a smaller supplier is gaining pace with over one in five consumers making the leap to medium and small suppliers last year, according to Ofgem.
‘The number of consumers with a small or medium-sized energy supplier reached a record high last year, continuing a sustained, long term movement away from the six largest suppliers’, according to an Ofgem statement published in February this year.
So, opting for a smaller supplier may be a good way to the best price for your energy. Though it is worth bearing in mind that smaller suppliers are likely to follow suit eventually, so locking into a low-priced fixed rate plan now, might be your best option to find the best price for cheap energy and save money on your energy bills over the next 12 months or so.
Plus, following the recent price hikes, many small suppliers will be seizing the opportunity to attract people looking to leave the bigger suppliers. This means they’re likely to keep prices lower to appeal to those potential customers, but also means these lower prices are available to everyone, whether you’re leaving a big supplier or not.
At Switchcraft, we can help protect you against price hikes now and for the long run. If you change supplier using Switchcraft today, when that contract expires, we’ll automatically switch you onto the cheapest deal on the market again, without you having to lift a finger. Our system searches for the best energy deals available and switches you to them automatically, so you can enjoy cheaper energy forever. Cheap energy switching is what we do best.
Check out our best energy deals with some of the smaller suppliers here.
Which other companies will raise their prices?
The rest of the big six are likely to follow the lead of British Gas, N Power and EDF. If this happens, over time medium and small suppliers are also likely to follow.
Check out the best prices for cheap energy here.