MILLIONS of Brits are overpaying on their energy bills when they could easily slash the cost by switching providers.
In fact, about 11million households are stuck on expensive Standard Variable Tariffs (SVTs) and default deals that are more than £300 more expensive than the cheapest deals on the market.
Luckily, such households will see their energy bills fall by up to £84 a year in October as regulator Ofgem slashes the price cap to £1,042, down from £1,126.
Meanwhile, prepayment meter customers will see their bills fall by £95 a year as this new cap will be set at £1,070 a year, down from £1,164.
Ofgem said this will ensure 15million households continue to pay a fair price for their energy.
But despite millions of households set to benefit, you can save even more money by shopping around for a better deal and then switching.
How to find a cheaper energy deal
FIRSTLY, you’ll need to have a recent bill to hand. This will have all the details you need, including the name of your tariff and your recent spending on gas
- Use a comparison website: Customers can use websites such as uSwitch.com, Compare the Market or Energyhelpline.com to compare tariffs and find a cheaper deal. You could save more than £300 a year if you’ve never switched before.
- There are other service you can turn to: MoneySavingExpert’s Cheap Energy Club will let you set up an email reminder that alerts you when cheaper deals become available.
- Things to do before you switch: Compare prices and before you switch check to see if you can get cachback from a website like Quidco or TopCashback.
Yet Brits are reluctant to do so – more than 9million households didn't change provider once between 2012 and 2017, costing them more than £1,500 over the five years.
There's no reason to be paying more than you need to – so we've pulled together the cheapest energy deals on the market that can save you hundreds of pounds off your annual bill.
The very cheapest deals tend to come from smaller firms looking to build their customer base.
But if you're worried about leaving one of the large energy companies, you can still save cash by getting them to switch you to a cheaper tariff than the one you're on now.
The cheapest deals on the market
Below are the 10 cheapest energy deals currently available on the market, courtesy of price comparison site uSwitch.com.
Remember that these prices are based on an average energy consumption – you could pay more or less depending on how much energy you use and where you live – and based on a customer paying via direct debit.
We've also compared the prices of the cheapest deals with the average default tariff after the new price cap comes into effect next month – £1,042 a year – to see how much you could save.
The typical Big Six tariffs are currently set at around the current price cap of £1,126.
- Green – apply here
Tariff: Palm Tree
Average yearly bill cost: £793.72
Potential saving: £248.27
- Igloo Energy – apply here
Tariff: Igloo Pioneer
Average yearly bill cost: £805.06
Potential saving: £239.94
- Simplicity Energy – apply here
Average yearly bill cost: £822.68
Potential saving: £219.32
- Avro Energy – apply here
Tariff: Simple and SuperConnect
Average yearly bill cost: £831.58
Potential saving: £210.42
- London Power – apply here
Tarrif: my london fixed yearly plan
Average yearly cost: £840.41
Potential saving: £201.59
- Robin Hood Energy – apply here
Tariff: RHE Clean & Green Nottingham Discount
Average yearly bill cost: £844.63
Potential saving: £197.37
- Outfox the Market – apply here
Tariff: Fix'D 20 14.0
Average yearly bill cost: £853.90
Potential saving: £188.10
- Together Energy – apply here
Tariff: Green Together Fixed July21
Average yearly bill cost: £855.44
Potential saving: £186.56
- Tonik Energy – apply here
Tariff: Go Green Fix + Free Boiler Service
Average yearly bill cost: £858.59
Potential saving: £183.41
- Green Network Energy – apply here
Tariff: GNE Summer Sizzler
Average yearly bill cost: £866.38
Potential saving: £175.62
Is it safe to switch to a small energy supplier?
FED-UP with sky high energy prices and poor customer service from the Big Six energy firms? Then you could save a packet by switching to a smaller firm.
Research from Which? has previously found that customers with smaller and medium-sized firms are happier than those with the major firms.
The biggest risk of choosing a small provider is that it goes bust.
But remember that if the firm does go under your supply won't be cut off, and Ofgem will try and get a new supplier in place as quickly as it can.
Once it has done this, the new firm will contact you. It doesn't have to honour the deal you were on with the defunct firm – but under Ofgem rules any credit you have on your account is protected.
If you're unhappy with the new supplier's offer you are free to shop around for a new deal and switch – you won't have to pay any exit fees to leave.
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