Paul Lewis Energy companies offer the best deals to people who pay every month by direct debit, read their own meter and send it in by email, and who do not get paper bills. I understand completely if all that sounds unattractive. But it does save money. If you make the whole switch from a standard, quarterly, paper billed supply to an online monthly tariff you can might save on average between £200 and £300 a year. Remember you get the same gas and electricity through the same pipes and wires and with all the same safety built in. The only change is the company which bills you.
The first step is to see what a difference it might make to you. The Consumer Focus website will show you the prices for different levels of usage in your area at http://energyapps.consumerfocus.org.uk/price/
Once you have looked at that to see what a difference switching might make then you can switch directly online. Consumer Focus has approved twelve online switching sites through its Confidence Code. I like theenergyshop.com, who know more about the energy industry than most, and which.co.uk/switch which is run by the consumer charity Which? But in theory all of them should give the same answers and I make no recommendations.
All you need is to answer a few questions and have your bills for the last 12 months to hand. If you do change to monthly direct debit then you will pay an average amount each month over the year even though you will be billed each quarter. So in the summer you will pay a little extra, in winter a little more. The companies tend to do the calculation so that they keep a bit too much of your money. But you can always ask for a large surplus to be refunded.
If you do it now remember that three big suppliers have all announced imminent rises in their average prices. Scottish Power by 2% for gas and 8.9% for electricity on 25 November; Scottish & Southern Energy by 9.4% from 1 December; British Gas has announced average rises of 7% from 10 December. EDF has said its tariffs will not rise until March. Others have not announced their plans.
If you have changed supplier before then the savings will not be as great. But they can still be worthwhile. And as the cold weather bites now is the time to change.
Written by Paul Lewis, this article was first published on November 24, 2010. Paul's opinions are his own and for general information only. Always seek independent, professional, financial advice.