Finding the energy to switch

With a rise in energy prices imminent, fuel bills are front of mind for the majority of UK households, but new research shows that over half (51 per cent) of UK households have not yet thought of switching their energy supplier, suggesting complacency is putting a drain on the nation’s finances.

According to new research by the UK’s only not-for-profit energy supplier, Ebico, of those who made the switch nearly nine out of ten households saved money as a result and that 49 per cent of the nation have changed their gas and electricity supplier in the last year or are planning to do so. On average the research found that it would take a hefty £26.23 a month to tip consumers into switching energy suppliers, amounting to over £300 per year, which may be as a result of the fact 45 per cent believe it would be a hassle to switch suppliers.

Despite the fact that almost a third of people believe that all energy companies are fundamentally the same, one in five of Brits would swap suppliers to stop giving money to ‘fat cat bosses’.

Phil Levermore, MD and founder of Ebico commented, “Our research shows that only around a third of people in the UK have actually shopped around for a good deal with their energy bills. Around another third believe that all energy companies are the same, which may go some way to explain the reluctance to switch. In the face of rising energy costs it’s important that people know exactly what they are paying for and where their hard earned money is going.

“We found that 29 per cent of people have no idea if they are wasting money unnecessarily because they have not bothered to check and a further one in five people believe they are paying over the odds for their gas and electricity Switching supplier is very easy.”

Across the UK, the top reasons for not shopping around were revealed.

It’s a hassle 45 per cent
People don’t think they’ll get a better deal 33 per cent
All energy companies are the same 31 per cent
There are lots of complicated forms 17 per cent
You might end up being charged twice 16 per cent
It’s boring 10 per cent
Your gas and electricity might get cut off 4 per cent

When making the decision to switch, consumers revealed what was likely to influence their decision.

Top influences when switching:

Reputation for good customer service 40 per cent
Recommendation from friends or family 21 per cent
Desire to stop giving money to ‘fat cat bosses’ 19 per cent
Good ethical credentials 16 per cent
Advertising 2 per cent

Myth busting the switching process:

Switching may look like an insurmountable and, let’s face it, dull task, but it’s a relatively simple process and doesn’t need to involve you filling out lots of complicated forms.

For example, at Ebico all you have to do is call 0800 096 634 or visit ebico.co.uk and fill in an application form – the team takes care of the rest. The whole process takes approximately four to six weeks and Ebico will contact your current suppliers and give them the relevant notice. Near to completion Ebico will contact you and request your final meter readings. These will be used as a full and final settlement of your account with your existing supplier and as a starting read for Ebico to take the supply.

Nine out of ten people who have switched their energy supplier in the last 12 months are now paying less.

Not all energy companies are the same. They may serve the same purpose in the eyes of the consumer but their business models vary widely, meaning there are benefits to each one. For example, Ebico offers the same flat rate to all its customers making it one of the cheapest options for prepayment meter customers and extremely competitive for low energy users, small households and people who are away from home for long periods of time.

You won’t be charged twice for your gas and electricity. Make sure you make a note of the meter reading on the day that your new supplier says your account will be transferred and give this to your new supplier. Your old supplier will send you a bill for the energy used up to this reading, and your new supplier will use this reading as the start point of your billing from them.

And finally...you can’t get cut off. All the wires, pipes and meters stay exactly the same, only the price and the company sending the bill change, so there will be no interruption in your supply of electricity and gas.