What is the difference between online discounted energy deals and standard energy?
At any one time, around half the UK households are on Standard Energy Tariffs. This is the default tariff you are placed on when you move into a new home or you simply don’t switch to a cheaper tariff.
Can you really get a cheaper tariff?
The sole purpose of comparison sites is so you can search for a cheaper tariff. They do this very well and it means you don’t need to visit all the energy suppliers to find the cheapest price yourself. That would be very time consuming, at one point there were around 80 energy suppliers. So, yes you can get a cheaper tariff but you need to look for it your self.
What savings can you expect when you switch to a cheaper tariff?
Let’s assume you use around 12,000 KWH of gas and 3100 KWH of electricity, the prices would be in the region of:
- Standard Energy £1200
- Discounted Energy £900
Why is discounted energy available and why don’t the suppliers just put you on the lower prices?
The whole point of the energy business being privatised was to create some competition. Energy suppliers will charge you the price they would really prefer to get. This makes an allowance for other suppliers to come in and undercut these prices. Although OFGEM regulates the energy markets, the suppliers are still private companies out to make a good profit.
It’s much the same as going into your local supermarket and paying £1 for a tin of beans, they could probably have sold you the beans for 75 pence but they didn’t because they want a bigger profit margin. You could shop around until you find those beans elsewhere at a cheaper price. This same principal applies to energy suppliers!
Why don’t you just tell us who the cheapest energy supplier is?
Energy prices are regional and dependant on the amount of energy you consume. It’s not possible to say So and So Energy is the cheapest. You do need to get quotes based on where you live and your own energy consumption to find your cheapest deal.
How do you get the cheaper energy deals?
First of all, get yourself organised. When you visit a comparison site they will ask you some questions. Ideally you need to know which tariff you are on with your current supplier. If you don’t know which tariff you are on, it’s most likely Standard Energy. Also, you need to know how much gas and electricity you consume each year, if you don’t have this information in KWH’s, you can just tell them how much you spend on your gas and electricity.
Getting quotes from a comparison site
There are thousands of comparison sites these days. You have probably heard of the ones that advertise on TV and Social Media. There is one surefire way of making sure you get it right first time. OFGEM have accredited a small number of comparison sites. You can view those here.
Making the right choices
There are plenty of energy suppliers to choose from but tread carefully, many of the newer suppliers have been going out of business. Once you have had you quotes, or before you even get quotes, check out the current tariffs we recommend in todays top tariffs