How to get the best deal on your energy supply
Sometime between now and December 2010 consumers will receive their first Annual Energy Statement from their gas and/or electricity supplier. Hannah Maundrell, editor of money comparison website money.co.uk advises consumers on how to use the new statements to their advantage:
"The new statements will tell you how much energy you've used over the past year, how much this has cost you, and what you can expect to pay next year if your usage remains roughly the same and prices don't go up," explains Hannah. "Consumers need to spend a little time understanding the terminology and details listed within the statements, as these hold the key to comparing alternative offers and getting the best deal possible on their energy supply for the coming year."
Four Steps to Cheaper Energy:
Double check that your usage is based on accurate meter readings - either those you've submitted yourself, or readings completed by the company themselves.
If you're tied into a fixed term deal you should note the end date and see how much you'll be charged for leaving early. You may save more than enough to cover this cost by moving to a tariff with a different provider so it's worth checking.
Once you're happy that your annual statement is an accurate reflection of your energy usage over the past year, you're in a position to start shopping around.
Keep your annual energy statement to hand when you do this as it will provide you with all the information you need to accurately compare tariffs and work out whether you should switch energy supplier.
It's the finer details that hold the key to cheaper energy bills:
There are certain pieces of information that your annual energy statement must contain. To ensure you are getting the best deal look out for:
The tariff: The energy tariff you're on dictates the cost per unit of your gas and electricity. Energy suppliers make life confusing by giving their tariffs very similar names, so knowing exactly which tariff you're on is important when it comes to shopping around for a better deal.
The cost of energy used in the last 12 months: This is the actual amount that you've paid for your energy over the last 12 months, providing you have been with the supplier for this length of time. This will be expressed in Kw/h (kilowatt hours) and stated for both gas and electricity if you have a dual fuel supply. If you have switched supplier in the last 12 months your annual statement will only show your usage history with the company that provides your energy now
Discounts: Details of any discounts you're currently benefiting from will be listed on your annual energy statement, as well as any that you are eligible to take advantage of if you stayed with the same provider but switched to a different payment method, or to a different tariff
Terms and conditions: The statement should detail the end dates of any fixed term tariff you're tied in to, and the charges you'd incur for leaving early, as well as any other relevant terms and conditions applied to your account.
A reminder that you can switch(!): Your annual energy statement must contain a reminder that you're able to switch suppliers and provide information about how you can do this - so take note!