TotallyMoney is urging households to switch energy providers sooner, so they can start saving money before their energy usage, and prices go up this winter. Research found:
- Ofgem figures show 22 million UK households are on the Standard Variable Rate (SVR)*, and paying the maximum their supplier is allowed to charge
- By switching providers, households can save an average of £271, and 1 in 10 can save up to £715 per year†
- Although energy bills fell by 7% in July to £1,720 for the average household, they are still almost £500 a year more than the average energy bill in April 2021‡, and are expected to rise by another £100 in April next year
Below, TotallyMoney CEO, Alastair Douglas busts five common energy switching myths, and urges those who are on the SVR to move to a new supplier and to start saving money:
Myth 1: “Switching is complicated and takes ages”
“The reality is that you won’t be left without heating or electricity. Your pipes and plugs stay the same, and the only change is who sends you the bill.
“Most switches take place within seven working days, and your new supplier handles all the paperwork – so you have nothing to worry about. They’ll even contact your old supplier to cancel your account. All you’ll need to do is give a final meter reading and you’re done.”
Myth 2: “I’ll lose power during the switch”
“This is physically impossible because your gas and electricity flows through the same pipes and cables regardless of who is charging you. Engineers will only need to visit if you’re moving house or getting a new meter installed. For a standard switch, no one needs to come to your home.”
Myth 3: “I’m stuck in my contract”
“22 million households are on the Standard Variable Rate, and it’s likely that their original contract has ended. And the chances are even higher if you’ve not moved suppliers in the past 12 months.
“If you are in contract, watch out for early exit fees which can cost up to £50 per fuel. However, if you’re within the last 49 days of your contract, your supplier can’t charge these exit fees. So, you could switch sooner than you think.”
Myth 4: “All energy deals are the same”
“Prices are still much higher than they were before the energy crisis, and it’s likely to stay that way. But most suppliers are now offering deals that undercut the energy price cap, meaning genuine savings are available.
“Just be careful because these deals will often lock you in for at least a year, and early exit fees can add up. So, make sure you read the small print, before committing to any deals.”
Myth 5: “Switching will damage my credit score”
“Energy switching doesn’t appear on your credit report and won’t harm your credit score.
“However, it’s worth remembering that setting up a new Direct Debit could require a soft credit search, so check your report before switching to make sure all the information on it is correct and up to date.”
Alastair Douglas adds:
“Energy firms need to be more transparent with customers, because these myths are not only leaving households cold, but also out of pocket. 22 million are currently paying the maximum amount suppliers are allowed to charge for energy.
“Loyalty doesn’t pay, but changing energy suppliers can – and that’s why we’ve launched a new energy switching service. Comparing providers takes minutes, and your energy supply won’t be affected during the changeover. So, check to see if you’re free to switch, and if you’ve not changed providers in the last year, then it’s likely that you can start saving money.”