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Save £200 by switching energy supplier - Ofgem

Save £200 by switching energy supplier - Ofgem
Date of Publication: Wednesday, 23 April 2014 16:38

Around two-thirds of people could save up to £200 on their energy bills by switching supplier, according to Ofgem.

The energy regulator says that almost two in three people have never switched their energy supplier and are missing out on the opportunity to find cheaper deals.

 

It believes that bill payers could save around £200 per year on average by changing supplier.

 

Ofgem polled more than 5,000 people, finding that the majority were confused by energy tariffs.

 

But the regulator said that new industry reforms will add some simplicity to pricing. Under new regulations implemented this month, suppliers now have to inform customers which of their tariffs are the cheapest.

 

They are also now restricted to a maximum of eight tariffs – four for gas, and four for electricity – putting an end to the multitude of deals that have baffled consumers in the past.

 

Angela Knight, of industry body Energy UK, said that suppliers were making it easier for consumers to find better deals.

 

"While many of us like to hunt for a good bargain, we never apply this to searching for a better energy deal," she said.

 

Ofgem highlights the latest regulation changes in 60 seconds.

 

Lengthy Switching Process

But the arduous process of switching energy suppliers has faced a barrage of criticism from several quarters, with some believing that this is hindering competition.

 

The current system, which can take up to five weeks to process a transfer, is deterring over a third of people from switching suppliers, according to independent supplier First Utility.

 

The company believes that if consumers can switch bank accounts in seven days, switching energy suppliers should be at least as efficient, if not faster.

 

First Utility hopes that Ofgem and the Government will add pressure to the industry to modernise its aging switching process. This, in turn, will persuade more consumers to shop around.

 

Are you interested in saving £200 on your energy bill? Get started today.

 

Keith McDonald

Which4U Editor

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Wednesday, 23 April 2014 16:38
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