5 myths about energy comparison sites debunked
The amount of people that switch energy suppliers each year is steadily rising. This is for gas, electricity or both as a dual fuel option. Finding a cheaper tariff is now easier than ever as there are multiple energy comparison sites to help with this. Furthermore, the Energy Switch Guarantee means that you will be with your new supplier within 21 days with no interruption of service whatsoever.
However, like with many things online, there are some common misconceptions when it comes to switching energy tariffs and/or suppliers. We will address these below and provide the necessary clarification on each matter.
Myth 1 – My current tariff means I cannot switch energy supplier
Some people think that they will not be able to switch suppliers if they are on a specific type of tariff. Others think that their circumstances mean they must remain with their existing supplier for the long haul. However, this simply isn’t true.
Anyone who is on an Economy 7 or Economy 10 tariff will still be able to switch between different providers’ own economy tariffs. Although, if you do wish to switch to or from one of these tariffs, you may require an installation of a new meter to accommodate the change.
If you are a prepayment meter customer, you also have the option of switching suppliers. It is worth noting that in most cases this will only be possible if you owe less than £500 or have been in debt for less than a 28-day period.
Anyone who is renting will also be able to switch in most cases, the only exception is if your landlord pays the utility bills directly, as these may sometimes be included within your rent.
Myth 2 – I don’t actually need to switch energy tariffs or providers
Partly true, switching isn’t mandatory, although you may not be on the cheapest tariff or with the best supplier. This means that you could still benefit from comparing deals online.
Loyalty bonuses don’t really exist and your loyalty with one company will not pay. Most energy firms offer new customers the best unit rates, whereas existing customers will soon find themselves on the more expensive standard variable tariff once their existing deal comes to an end.
Smart meters can help you better understand your energy usage, this will allow you to alter your consumption habits which will reduce your costs. A smart meter doesn’t actually mean you will automatically save.
Some people are convinced that the energy price cap will protect them. This cap only applies to those on a standard variable tariff – these are already the most expensive option. Furthermore, the price cap doesn’t guarantee protection from price changes. This is because Ofgem, the industry regulator, schedules these adjustments twice per year.
Some customers are reluctant to switch because they are already on a good deal. This may be true for price but there are other factors to consider when choosing your next supplier. Important factors include contract length, tariff type and customer service.
Myth 3 – Switching energy supplier is difficult and will cause me problems
Many customers who have been with the same supplier for years will be tempted to stay with them as they believe that switching is too much of a hassle and could cause problems – this simply isn’t true.
You will not need any new pipes or equipment to be installed whatsoever when switching providers. Fortunately, you won’t actually need to do anything, your new supplier will manage the whole switching process for you. Similarly, you will not need a new meter installation unless you have specifically requested your new supplier to install one.
Another talking point is being without service. In reality, your gas and electricity supply will not be interrupted at any point during the switching process. You will be able to continue to use energy as you normally do before, during, and after the switch.
Myth 4 – Energy suppliers are going bankrupt every year
Although it is unlikely that your energy supplier will go bust, Ofgem has put in place measures to ensure customers are never without an energy supply when a supplier does go out of business. In the off chance that this does occur, Ofgem will find you a new supplier, this will be done through a process to ensure you get the best deal available to you.
Myth 5 – It isn’t worth switching energy supplier
Some customers are convinced that the comparison and switching process isn’t worth the time or effort, this is absolutely false.
The switching process is now easier than ever thanks to the Energy Switch Guarantee. If you have your latest bill to hand, you can find a new supplier within minutes. Furthermore, the switch is fully managed by your new supplier and you will be transferred over to them within 21 days.
When comparing deals online, there’s a strong chance that you will be able to save a decent amount of money on your yearly bills.
