Household energy bill could be less with online tariff
With the winter weather starting to bite, Brits looking to reduce their outgoings by cutting the cost of their utility bills should review their payment method, tariff and energy provider, says moneysupermarket.com.
Review your payment method
Research from the UK's leading price comparison site reveals bill payers languishing on their supplier's standard tariff and paying quarterly by cash or cheque (QCC), could save themselves a total of £3.5 billion per year or £253.33 per household on average by switching to the best online deal on offer, and paying by monthly direct debit (MDD).
Mind the gap!
The research also exposes the widening gap between the cost of paying for your energy usage. Last year the difference between the best and standard deal was £178 on average and this has increased by £75 or 42 per cent to £253.
Scott Byrom, utilities manager at moneysupermarket.com said: "While the cost of online energy deals has fallen this year after a raft of price cuts, a freeze on the cost of standard energy tariffs means those bill payers languishing on these tariffs are being penalised even further. It is worrying to see the gap between payment methods widen so rapidly, but provides a clear call to action for bill payers - apathy won't be rewarded here so taking action and swapping to the best deal possible is crucial."
Loyalty doesn't pay
moneysupermarket.com also found British households languishing with the traditional gas and electricity provider for their region - the incumbent provider - are missing out on £3.3 billion in savings - this has increased from a potential £2.5 billion saving six months ago. On average a British household could save £316 by swapping to the ‘best' online deal for their region - those in East Midlands can save the most, an impressive £349 a year.
Scott Byrom continued: "Looking at the savings to be made by swapping away from your incumbent provider, and ensuring you pay by MDD, should be the first port of call for people looking to save money on your energy bills. This option allows bill payers to spread the cost of their gas and electricity bills equally each month - rather than having to fork out for the large bill that lands on their doorstep each quarter. An online account allows customers to enter ‘actual' meter readings quickly and easily - ensuring they pay for exactly what is used, not an estimation.
"Changing to an online tariff gives consumers the opportunity to keep track of their payments and have a clearer idea of their balance by managing their account online. Online tariffs based on MDD payments are discounted because less administration is needed - so bill payers can cut out what can be poor customer service from call centres, saving cost, time and paperwork, in one fell swoop."