£3.8 billion lost in energy bills, warn finance experts

5 Feb, 2020

Finance experts TotallyMoney have warned that 27 million UK households are potentially missing out on substantial £300 savings due to price hikes and widespread misconceptions. Research reveals:

  • £300 a year could be saved on average in UK households by switching energy tariff
  • This equates to customers overpaying by £3.8 billion due to not switching energy tariff or supplier
  • 82% of the British public failed to switch energy in 2018
  • Over half (58%) falsely believe they are already on the best tariff

TotallyMoney’s award-winning free credit report has always shown customers how much their money habits affect their credit score. Their brand-new energy switching service helps customers to improve their spending habits, and means they will now see their best money-saving options to ensure they never pay more than they need to.

The launch comes at a pivotal time for customers, many of whom resolve to take control of their finances at the beginning of the year but remain unaware of how significant an impact energy switching has on their financial welfare.

Shockingly, nearly three in five (58%) believe they are already on the best energy tariff. However, many don’t know that some energy suppliers automatically place customers on the most expensive plan once their introductory period ends, which is only capped due to restrictions and regulations mandated by the government.

The lightbulb moment

TotallyMoney customers now get a constantly up-to-date view on how much they can save on their energy bills and can complete a money-saving switch in as little as two minutes. This hassle-free experience will overcome significant barriers for customers, with one in four believing energy switching to be an inconvenience and are left out of pocket as a result.

Customers can also choose how they save based on what matters to them most, whether that’s price alone, well-established energy providers, contract flexibility, or green suppliers.

Alastair Douglas, CEO of TotallyMoney, comments:

“We’re excited to launch energy switching for our customers and are keen to get the word out about how significant the potential savings are. 

“It’s alarming that £3.8 billion of people’s hard-earned money is being lost due to not switching.

“A £300 annual saving is a worthwhile return in exchange for just two minutes of someone’s time — and that’s just the tip of the iceberg. For larger households and families, the potential savings could be even greater.