Average household could cut energy bill by £263

The nation's energy bill payers are wasting £4 billion a year by not shopping around for the best deal on their gas and electricity, according to moneysupermarket.com.

Research from moneysupermarket.com has found that households can save £263 a year each by swapping away from their incumbent tariff to the best online dual fuel deal available at the moment - or £4 billion collectively. Ofgem research shows 58 per cent of gas customers have never looked for a better deal, with 57 per cent of electricity customers remaining apathetic. Therefore, of the 27 million households in the UK, 15.66 million and 15.39 million people respectively have never moved away from their incumbent gas or electricity supplier.

Scott Byrom, energy manager at moneysupermarket.com, said: "Scottish & Southern Energy's customers are already in for a bad Christmas following its announcement that it is hiking gas prices on December 1st, and we could well see other providers follow suit. Higher bills could cause real problems for many households. Our research found 24 million people would look to put extra layers on this winter rather than turn their thermostats up because their energy costs are already so expensive. With energy consumption at its highest over the winter months, price increases are the last thing people need.

"However, the good news is most people can reduce their energy bills significantly. As a nation we are paying nearly £4 billion a year more than we need, because so few people take advantage of the cheapest deals available. By swapping on to the best available deal each household could slash their annual energy bill by £263 on average.

"We use around 40 per cent of our annual energy consumption between November and January, so now is the time to switch to ensure you maximise the savings and beat further possible price hikes. Those looking to fix should look at the New Energy Fixed tariff from OVO Energy at £993 a year for the average household which offers fixed rates for 12-months from the date of sign-up. You could pay less with a variable rate tariff, although obviously there is a risk that the cost could rise if prices go up. The cheapest variable rate tariff is the iSave v5 from First Utility at £883 a year on average. It's always worth using a comparison service to find the best tariff for you as the cheapest deal could vary depending on where you live and how much energy you use."