How much can I save by switching my energy supply? – Latest

Savings from Switching your Energy Supply

Summary

Savings from switching your energy supply currently stand at close to record levels, almost £400 a year for a household with average energy usage.

From 1 October 2019, version 3 of the energy price cap will reduce energy bills by £75 for a typical household still stuck on rip-off standard tariffs. Despite the price cut, savings from energy switching, at £324, will still be in line with where they were before the energy price cap came into effect. So much for the promise to bring “an end to rip-off energy prices once and for all”.

Analysis

In this analysis, we have projected forward the cost of Standard Variable (rip-off) tariffs to where they will be on 1 October 2019. This is compared with the cheapest energy deals in the market as at today. Clearly it is possible that the cheapest deals may vary to 1 October, so the figures below are indicative rather precise. To get a precise comparison please use our energy price comparison service by popping your postcode into the box below.

 

energyscanner-savings-from-energy-switching-uk

 

In a nutshell, even after the lower price cap comes into effect, savings from energy switching for a household with average energy usage will be £279 for customers paying by Monthly Direct Debit. However, if you still pay quarterly by cheque or debit card then the saving is a massive £369 a year.

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Conclusion

Let’s be absolutely clear about this. The energy price cap is really lousy deal for consumers.

According to Ofgem, there are still 11 million customers on standard default tariffs. Each of them have already each lost out £214 since the energy price cap came into effect on 1 January 2019. They will each lose an additional £33 a month waiting for their bills to fall. Once the new cap comes into effect on 1 October 2019, they will then continue to lose a further £27 a month thereafter.

If you are reading this, we hope you are not one of those 11 million. If you are, hopefully you now know what to do.

How we calculate savings from switching your energy supply

Savings shown compare the price of the Standard Variable Tariffs of the Big 6 energy suppliers (as they will be on 1 October 2019) with the cheapest* energy deal in the market at the beginning of the month.

Energy usage is based on current Ofgem average typical consumption values – 12,000 kWh a year for gas usage and 3,100 a year for electricity usage.

Analysis is based on Standard electricity meters only (does not include Economy 7 or night time usage meters). If you have an Economy 7 meter please use our domestic energy comparison service to get a customised quote.

Energy bills are calculated for each energy region and then averaged. Average bills are calculated for the 2 main payment methods – monthly direct debit and quarterly by cheque or debit card.

These are then compared with the cheapest* deal in the market at that time. Cheapest* in our methodology means the tariff that satisfies the following criteria.

  • Has a duration of 12 months or longer (short dated tariffs provide no certainty for consumers and cannot be compared on an annual basis).
  • Has national coverage (excludes regional tariffs)
  • Is widely available to consumers (excludes exclusive deals).
  • Does not have onerous payment conditions – for example taking money out of customer accounts before supply start date.

* There may be cheaper tariffs that do not meet these criteria but they are excluded from our analysis for comparability reasons.

Actual Savings

Your actual savings will depend upon your personal circumstances and are affected by the following factors; where you live, how much energy you use, how you choose to pay for that energy (it can make a big difference), your meter type and, most importantly, which supplier and tariff you are currently on. To get a customised quote please pop your post-code into the box below.

If you are new to switching you might want to read our Energy Switching Guide first.

Why pay more for the same energy?

Find and switch to a better deal in minutes.

This page is updated frequently so please check back regularly to get the latest insights on what’s happening with UK domestic energy prices.

Last update; 29 August 2019