For some time now customers have been able to switch their gas and electricity supplier with the aim of reducing their household energy bills. It has been estimated that approximately 60% of Scotland’s population is currently paying more than they need to for fuel (National Audit Office, 2003) and could hence save money from switching supplier.
Before deciding to switch supplier, you can, first of all consult Consumer Direct, who are funded by the government, for advice. They have regionally based advisors who are specially trained to give practical advice on all kinds of consumer issues. For advice phone 0845 404 0506 or log onto their website, www.consumerdirect.gov.uk|, select "Energy and Post" and follow the links.
When viewing a price comparison table, figures are often based on the household’s level of usage, low, medium or high. The table below shows how these correspond to actual figures and hence which category you will fall into.
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Definition of ‘user’
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Low
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Medium
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High
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Electricity/year (kWh)
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1,650
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3,300
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4,950
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Gas/year (kWh)
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10,000
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19,050
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28,000
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It is important after viewing a price comparison table that you check that the prices displayed are current.
No one supplier will ever be cheapest in all departments. The overall cost of each bill will vary in respect to fuel tariff/consumption, standing charge, payment method, capped offers and discounts i.e. duel fuel. It is important to make sure to sign up for a package that suits your individual circumstances.
Some useful questions to consider prior to changing supplier:
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Fuel charges (pence per kWh) and how long are they guaranteed for?
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What payment methods are available?
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Do different methods affect the price?
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Is there a standing charge?
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Does the supplier have a high rate of complaints?
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What happens if you cannot pay the bill?
The switching process:
Step 1 Make contact with the chosen supplier and agree a contract.
Step 2 Give old supplier 28days notice by telephone.
Step 3 Give old supplier 28days notice in writing.
Step 4 Settle existing bills with the old supplier.
Step 5 Take a meter reading on the day of changeover.
Step 6 Ensure you cancel any direct debit or standing order to your previous suppler.
This whole process should take around 6 weeks to complete and your new supplier will be able to update you on progress. If you sign a contract but later change your mind there is a 7-day cooling off period in which you can cancel the contract without a penalty.
Always remember…
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Do not change supplier if you do not want to.
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Be cautious of the claims salespeople make regarding the savings to be made by switching. Investigate yourself.
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Do not invite door step salespeople into your home.
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Always ask for identification.
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Do not sign anything on the doorstep; be sure to read over information first.