Is it really worth changing your energy supplier?

Energy prices often hit the headlines. Earlier this year, a 5.5% price rise by British Gas was labelled “unjustified” by the government. Nevertheless, several other energy providers followed suit and also raised their prices.

The energy companies are saying that prices need to increase the extra charges it faced as part of government policy, such as the introduction of smart meters and emissions targets.

But organisations such as price comparison website Moneysupermarket believe that the price increases are due to the fact that legislation to cap energy prices is currently going through parliament. The Domestic Gas and Electricity (Tariff Cap) Bill – which will compel the energy regulator Ofgem to implement this cap – is expected to become law this year. Theresa May hope that it will “force energy companies to change their ways”.

That may be the case, but according to Stephen Murray, from Moneysupermarket: “The big six suppliers know they have a short window to adjust prices upwards before the government starts to enforce pricing legislation.”

These recent price changes have led Ofgem to encourage householders to shop around for money saving energy deals. Indeed, it can be possible to save a few hundred pounds a year by doing this.

Changing energy supplier can be a very easy way to save money, and usually only takes a few minutes. So is is well worth looking into it.

Despite this, many of us don’t bother. It just feels easier to stay where you are, and we also don’t really believe that the promised money saving will actually materialise. There always seems to be a snag somewhere or other.

But if you were to change supplier, what is the best way to go about it?

How to change energy supplier

Firstly you will need to gather the following information:

Your postcode
The name of current supplier
The name of the energy offer you’re currently on and how much you spend on gas and electricity. You can find this information on a recent bill.
An up-to-date meter reading
Your bank details if you will be paying by direct debit
Your Meter Point Access Number (or ‘MPAN’) and Meter Point Reference Number (or ‘MPRN’). You can find these on a recent bill.

You then need to compare prices offered by different suppliers. There are many price comparison websites around; three useful sites are below:

Once you locate a better deal, it is simply a case of contacting the new supplier that you want and they will sort everything out for you. You will also have a cooling off period during which you are able to change your mind before the final switch takes place.

So you have nothing to lose and everything to gain! If you are trying to sort out your finances then reducing your energy costs can make a significant difference.

We hope that this article will encourage you to at least look into changing energy supplier and that you do end up paying less as a result. Check back here again soon for more money saving tips from Loans2Go.