Energy inertia costs customers dearly
As MPs challenge energy providers and Ofgem about transparency of charges for bill payers, MoneySupermarket has found that British households who have spent the last five years languishing on their energy supplier's standard tariff will have forked out an additional £1,148 (or 19 per cent) on their bills. Now, with speculation that provider price rises are looming on the horizon, it's time to take action, says MoneySupermarket.com.
Analysis by the comparison site reveals that if households have stayed on the average standard tariff for the last five years they will have paid £1,148 more than if they had moved onto an online dual fuel tariff. Over that five years, an average standard tariff bill payer will have forked out £7,234 in total, compared to £6,086 for an average online dual fuel bill.
Furthermore, since 2008, the average standard tariff has risen from £1,049 to £1,351 a year, an increase of 29 per cent.
Lucy Darch, General Manager of Energy at MoneySupermarket, said: "Let's face it - apathy over energy bills is lethal to the wallet; any bill payer sat on a ‘standard' tariff from their provider should take action now to reduce the amount they are paying for their gas and electricity. For both the short and longer term view, it's clear there are significant savings to be made by being in control. Where possible, moving online to a dual fuel tariff, and paying monthly by direct debit, is the easiest way to make savings; and will ensure your hard earned cash doesn't go up in smoke."
"Bill payers need to lead the charge against rising bills - and it's quick and easy to do. All you need is a copy of your latest bill and five spare minutes when you can get online, compare available tariffs and move on to a better value energy deal. Or alternatively, call our contact centre who will help you through the process offline. With price increases likely, bill payers should all be in the habit of regularly comparing and switching to the cheapest tariff and taking steps to be more energy efficient at home. Making simple changes such as doing 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. Submitting regular meter readings is a must to help your supplier bill you accurately for the energy you used.
For those wanting to guarantee their outgoings, fixed tariffs are an attractive option; the Online Price Fix February 2015 tariff from npower for example, will fix your bills at £1,184 a year, Scottish Power's Online Fixed Price Energy November 2014 costs on average £1,195 per year and Edf Blue + Price Promise September 2014 costs on average £1,209 per year - that's three options all with no termination fess that can give you peace of mind that your energy bills won't rise."