Experts predict that the energy price cap is set to increase by around 50% in April! This could make it difficult for many homeowners to keep up with monthly bills. Nevertheless, some Brits could reduce the cost of energy by shopping around for a new provider. If this is an appealing option for you, here’s how to switch your energy provider and beat the rising costs of energy.
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Should you switch your energy provider?
The energy price cap is set to increase later this year due to the rising wholesale costs of gas and fuel. This means that the limit on the amount that households have to pay for basic tariffs will increase. Consequently, the majority of energy providers will raise their prices significantly.
The energy price cap is expected to increase by around 50%. Therefore, it may be worth switching your energy provider to a fixed-rate provider that is no more than 40% higher than the current price-capped tariff. Fixed-rate energy tariffs are not affected by the price cap. Usually, these tariffs are considered to be the more costly option. However, the up and coming price cap increase could change this.
Switching to a fixed-rate account that is 40% costlier than your current tariff will save you money in the long run, when capped rates increase by around 50%. However, fixed-rate tariffs that are more than 50% more expensive than those offered by your current energy provider won’t provide any savings.
In order to save money by switching your energy provider, you need to find a fixed-rate tariff that will beat the rising energy price cap.
How can you find the best fixed-rate deal?
The best way to find a cheaper energy provider is to use an Ofgem accredited energy comparison website. These websites are able to find the best deals according to your postcode. Websites that are accredited by Ofgem are unbiased and free to use. You could also contact suppliers directly to ask about their best deals and prices.
How do you switch your energy provider?
Switching energy providers is fairly straightforward if you have the right information. Before starting the process, it’s useful to have the following to hand:
- Your postcode
- The name of your current energy provider
- The name of your current tariff
- Your annual energy usage and costs
Most of this information can be found on your most recent energy bill.
Next, make sure that you take the time to find the best energy provider for you. Use comparison websites to shop around and ask different suppliers about the deals they offer. You can never do too much research! It’s always best to know exactly what you’re getting into before you choose to switch.
Before making your switch, you should check for any hidden exit fees. Some providers will issue these to customers who are within an agreed contract period. If this is the case, it may be worth waiting until your contract period has ended.
Once you’re settled on a new provider, you will need to choose your tariff and start the switching process. This can take a couple of weeks to complete. You should receive further information from your new supplier to confirm the transfer.
Make sure you tell your current provider that you are switching. This will prevent confusion and will make the switching process easier. You will receive one final bill from your current provider. Be sure to pay this promptly or ask for a refund if you’re in credit.