Households miss out on £3.8 billion energy saving by not switching
UK households could reduce their annual energy bills by more than a fifth (21 per cent) by moving from their traditional energy supplier to the cheapest available product - an overall saving of £3.8 billion for the nation and a potential saving per household of £300 a year.
Research by moneysupermarket also reveals the regional differences in the savings to be made by switching to the best deal. Of the UK's 14 energy regions, bill payers living in the North Wales and Liverpool region who are still customers of their original energy supplier have the highest average annual bills of £1,444 for their gas and electricity. The cheapest energy bills paid by those who have never switched are found in the East Midlands where the total dual fuel bill is £1,385, a difference of £60. However, it is bill payers living in the South East who can make the biggest saving - £385, or 27 per cent.
The recent cold and snowy weather will have added pressure to households already facing costly bills from the busy Christmas period, making the need to save money by switching tariff even more important for bill payers. Households who have never changed their energy deal could save an impressive £300 a year on average if they moved from the original (incumbent) provider's standard tariff and opted for the best value deal. If all the households who've yet to change to the best possible deal, made the switch the nation could collectively save £3.8 billion on its energy bills.
Clare Francis, Editor-in-chief at moneysupermarket, said: "The current cold snap has no doubt caused many households to dial up the thermostat, but there is obviously a price to pay for this. Price hikes, the festive period and the cold, snow-filled weather are a perfect storm for costly bills piling more pressure on hard-pressed families. But it's not all bad news as some of that money can be clawed back.
"Firstly, if you haven't changed your energy deal in the past 12 months, chances are you'll be paying more than you need so look to see if you can make savings by switching to a cheaper tariff. We recommend going for a fixed online deal as that will protect you in case we see another round of price hikes this year. If you're currently on a fixed price plan, remember to switch when it comes to an end.
"As well as saving money by switching tariff it's also worth thinking about how you use energy at home. Making simple changes such as doing your washing at 30 degrees rather than 40 or 60, and turning appliances off as opposed to leaving them on standby, can result in significant savings over the year."