Most energy suppliers play the same shady game. You sign up on a cheap deal, and when that deal ends (usually after a year) they roll you on to their most expensive tariff.
If we can’t trust them to give us a good price, what else could they be hiding? Let’s take a look at the 7 things your energy supplier won’t tell you…
1. Being loyal doesn’t pay
You’d think that being loyal to an energy supplier would be lower costs? That’s not the case. Most of the time suppliers roll you on to their ‘standard variable’ tariff when a fixed deal ends. That means you may say money in year 1, but massively over pay unless you switch again.
2. You could get a cheaper deal without switching
When your deal comes to an end, you can get another good deal by switching again. However, you can also contact your current supplier and ask to be put onto their cheapest deal. All suppliers have multiple tariffs, so there will usually be a cheaper alternative. All you have to do it ask.
3. Their ‘standard variable’ subsidises cheap deals
Suppliers usually make a loss on customers who are on their cheapest deals. This is because they bet on customers staying with them when those deals end. Most people stick around and get ripped-off on their worst deal – meaning they can afford the initial losses.
4. They could owe you money
If you don’t provide meter readings then you could be paying for energy you aren’t using. This means you’ll build up a credit balance with your supplier. Research suggests that Britain’s energy companies are holding on to almost £1 BILLION of our money. You are entitled to a refund at any time. Just check your most recent bill to see if you are in credit.
5. The price cap sucks (for you)
The price cap has been introduced to protect customers who never switch. However, the energy regulator has predicted less people will switch because of it. You can often find deals which are hundreds of pounds cheaper than the price cap. There is also misconception around how it works. It is not a cap on how much you pay. Instead it’s a cap on rates – so if you use more energy you will pay more.
6. 2018 was the worst year for price rises
New research shows that there were 57 price rises in 2018 – the worst year on record. In 2017, there were just 15. Despite this, suppliers like British Gas were able to announce record profits. What does that tell you?
7. Auto-switching is the future
People are too busy (or can’t be bothered) to switch every year. That’s why auto-switching sites like Look After My Bills are the future. You sign up just once (for free) and they make sure you’re always on a good deal, automatically!