Showing posts with label cheapest energy deals. Show all posts
Showing posts with label cheapest energy deals. Show all posts

Thursday, 7 September 2017

What is collective switching?

What is collective switching?

The Energy Advice Line has welcomed an Ofgem ruling that requires energy suppliers to publicise "collective switch" tariffs on their Cheapest Tariff Message (CTM).

Suppliers are already obliged to include information on bills about the cheapest tariffs available and how much a customer might save by switching to the deal.

But under a new ruling, suppliers must also include details of the tariffs available through collective switches - those organised by a group of people who use their buying power to get a better deal.

Normally a customer would have to register with the collective before switching, but under the new ruling they will be able to switch after the collective rate has already been fixed.

"When carried out in a responsible and trustworthy manner, we value collective switches as an innovative way of engaging consumers and facilitating the switching process," Ofgem says. "Collective switches provide consumers, including the vulnerable, with another means of accessing better energy deals, which in turn enables them to save money."

But Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said it was important for consumers to examine collective switch tariffs very carefully as often they were not as cheap as they appeared at first glance.

"There's no reason why more customers should not benefit from collective switch tariffs, an innovative way of securing good deals and encouraging consumers to switch," said Julian Morgan, managing director of the Energy Advice Line, the UK's leading price comparison, switching and advice service.

"But it's important to look at the details of the tariffs and ascertain wehther it is genuinely cheaper than other deals available elsewhere. The collective may not have had access to the best deals, for whatever reason, so consumers need to be careful."

Mr Morgan said there was no better way to find the best deal than shopping around and checking the market.

"You should do this yourself or use the services of a reliable and reputable service like ours. Our quotes are quick, simple and you can compare this with what you are already paying, or the collective switch tariff publicised on the CTM.

"The important thing is to stay in control of your energy supplies, switch regularly and make informed decisions. That's the best recipe for saving money on your energy bills."

The Energy Advice Line is a concumer champaign and an indepdendent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information, visit energyadviceline.org.uk

Thursday, 29 September 2016

Trouble getting the cheapest deals?

Existing customers barred from cheapest deals

News has come out this week that some of the Big Six energy suppliers are barring their existing customers from being able to find the cheapest tariffs that they have on offer.

Having been uncovered by Radio 4's 'Moneybox' programme - researchers have found that E.ON, EDF, SSE, and British Gas have ensured that their existing customers are unable to make the most of the cheapest prices they offer to new customers.

These tariffs for existing customers can end up costing hundreds of pounds a year more than if they were to switch onto a more competitive tariffs designed to attract new customers.

Previously, this type of practice was ruled as unfair and banned by the industry regulator Ofgem in April 2014. Earlier this year Ofgem announced that they would no longer be reinforcing this rule after a recommendation from the Competition and Markets Authority (CMA).

Comparison agencies have compared the prices by either renewing as an existing member of the supplier, or registering as a new one, and with E.ON this price difference came in at £260. But E.ON is not the only one to employ this tactic.

Research by the BBC has found the following results from British Gas:
  • 'Home Energy Exclusive June 17' tariff as a new customer - £735
  • 'Home Energy Exclusive June 17' tariff as an existing British Gas customer - £972
These tariffs have also been shown to be hidden from other services such as the Energy Helpline because the information provided will rule them out of being a new customer with the existing supplier.

However, currently the consensus is that the other Big Six suppliers will not follow in the direction of their competitors. Scottish Power released a statement to say that they will not be offering these sorts of tariffs, stating that their customers can switch freely between the different tariffs on offer.

The best way to ensure that the price you are paying is competitive is to take on the advice of an unbiased and neutral help line, such as the Energy Advice Line. The leading price comparison and switching service provides free advice, and if you wish to change your supplier they will do all the hardwork for you from initial sign up through to completion.

To find out more visit energyadviceline.org.uk