Martin Lewis

Gas & Electricity
TIME TO SWITCH! Find cheapest supplier & get £30 or crate of wine

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Solution in a Nutshell


Switch and all that really changes is the price and customer service. The easy way is via a free comparison service; just tell it where you live and how big your bills are and it’ll tell you who’s cheapest; and if it can switch you, you’ll get paid cashback/freebies on top.

  • Overall top comparison service. My top pick, based on historic reliability & feedback, is Energyhelpline*. It pays £15 cashback per switch whether gas, elec, or dual fuel.

  • Alternative comparison services for freebies. In some circumstances bigger incentives are available; switch to dual fuel and Moneysupermarket* pays £30 cashback. Alternatively Uswitch* gives a voucher for 12 bottles of wine, worth about £40, limited to one per household; (more details below in the top comparison sites section).

Time To Switch 'Traffic Light' Status: GREEN It's a good time to switch.

All six major suppliers have now raised the price of their main tariffs. Therefore the playing field is level and it's a good time to compare and switch. Full Time To Switch info

Want to save more and get extra grants?
Please read the whole article below for more tips, options and explanation.

It only takes five minutes to switch energy supplier, saving you up to 20%, plus there’s a way to get paid to do it. Go to a comparison service direct and they’ll just find you the cheapest; but so many MoneySavers switch, there’s been a price war to win your business, meaning you earn up to £30 cashback or 12 bottles of wine on top.


Other Travel MoneySaving Articles

How to cut costs & energy use

There are two ways to cut energy costs; use less and pay less for what you use.

When you switch, only the price really changes

The pipes, circuits and wires, safety coverage and gas and electricity flowing through the house are all the same. Only customer service, billing and, most importantly, prices change; the new supplier performs the switch; all you do is take a meter reading.

Of course, there've been many switching ‘horror stories' and sadly these still happen, but for most it's a smooth process.

The savings are big, often £100s a year

Considering it only takes a few minutes, the impact is vast.

Bullet If you’ve never switched before

This means you’re using British/Scottish Gas for gas and your regional electricity company for electricity; in which case you can cut your bill by up to a massive 20% by switching. This is because, if you’ve not switched before, they know you’re willing to pay high prices without considering it and thus profit from your inertia.

Bullet If you have switched before

Here, savings are smaller, as you've already had the big ‘first switch' gain, yet savings of around 10% are still possible. As who’s the cheapest changes regularly, it’s worth comparing annually or after a major bout of price changes to see if it’s worth it.

While it sounds strange, you may save money even if your bills go up! In a period of regular price rises, switching often doesn't mean you actually pay less. If you’re saving 10%, when all energy prices are increased by 20%; you’ll still pay more than you were; yet paying less than if you hadn’t switched.

How you pay is crucial

The savings also depend on how you choose to pay:

bullet Direct Debit is cheaper.

Fixed monthly direct debit payments (where you pay a fixed estimate each month) save you up to 10% as companies are sure you won't default, and they earn interest on any overpayments (which should be refunded at the end of the year). Yet if you pay by variable Direct Debit, always ensure you call in a meter reading after a bill, don’t rely on their estimates.

bullet Dual Fuel isn't always cheaper.

Logically dual fuel (gas and electricity from the same supplier) should be cheaper and it often is, yet not always. During your comparison, also compare the cost of the cheapest dual fuel supplier with separate cheap gas and cheap electricity suppliers.

bullet Even if you’re on a prepayment meter you can switch and save.

Those who have prepayment meters can still switch and save, the comparison services allow you to see who offers the cheapest prepayment charges. Yet if you can switch away from a meter (it’ll often be credit scored) do so, as that’s much cheaper.

Get grants and go green to save too

Cutting down on energy usage will save you cash too:

bullet Grants for being green.

There’s a vast range of grants available for improving home heating and insulation, just go to the Energy Saving Trust’s Energy grant search. For more grants available for all types of home improvement, see the full Find A Grant article.

bullet Just use less energy.

Cutting energy is a mix of big and little things. Turn down the thermostat and wear jumpers; turn lights off when you leave a room; use energy saving lightbulbs; defrost the fridge and check it's not on too high; don’t leave electrical goods on standby… for more info read the Energy Saving Hunt and the Energy Saving Trust.

It’s also possible to pick a green energy option, see the picking the perfect tariff section.

Is now the time to switch?

If you’ve never switched before; it’s always worth doing. For everyone else timing is crucial; the worst moment is when a major energy provider, such as British Gas or npower, has just announced a cut or rise in prices.

This is because when one company announces a price change, within a month or so all the others tend to follow suit; thus do a comparison then and it isn’t a level playing field. When prices are rising, you may shift to a company only to see its prices jump up the next day. It’s slightly less important with dropping prices, but even then you may end up leaving a company that drops its prices the next day and becomes cheapest.

The two indicators below will help you decide whether the time's right.

Indicator 1: The Switching Traffic Light

Time To Switch

All of the six big providers have now hiked prices for their main tariffs; this means there’s a perfect level playing field for comparison. It's important to understand this doesn’t mean prices won’t rise again; that’s possible. Energy suppliers have a herd mentality, once one raises its prices the others follow; yet by doing a comparison at this time, when all providers are at an equal stage of price movements, the comparison is as fair as possible. If and when another round of price rises starts, full details will be in the free weekly e-mail.

Time To Switch

The free weekly MoneySaving e-mail will tell you when it changes

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Indicator 2: The last price rise/fall chart

The chart below shows each company's last price change for its main tariff (specific specialised tariffs may change independently); if that was much more recent than the rest of the market, it's likely others' changes are due soon as they come in phases. The last major changes were price rises as the wholesale energy price - the cost the gas and electricity companies pay - increased.

It’s important to understand that when you do a comparison it will be at the ‘post-price-rise/cut price', as comparison services incorporate the new prices at the moment they’re announced; not the moment they happen.

Don't assume the biggest price drop means the cheapest company.
It always depends on what the prices were before.

Main Tariffs Last Price Rise or Fall Table
Company Sub Brands/Tariff Names When it took (takes) effect Main Tariff Price change (1)
Gas Elec
Energy Companies' Major Tariffs
British Gas Scottish Gas 18/01/08 +15% +15%
E.ON Powergen, Staywarm 08/02/08 +15% +9.7%
npower Juice 05/01/08 +17.2% +12.7%
Scottish power Manweb 02/02/08 +15% +14%
EDF Energy London Energy, SEEBOARD SWEB Energy 18/01/08 +12.9% +7.9%
Scottish & Southern Electric Atlantic, SWALEC, Scottish Hydro 03/07/07 (gas)
04/07/07 (elec)
+15.8% +14.2%
EBICo Equipower, Equigas 01/04/08 +12.2% +14.8%
Selected Major Online Tariffs
British Gas Click Energy 5 02/05/08 (Introduced 08/02/08) N/A (2) -4.1%
E.ON EnergyOnline Extra Saver 5, Electricity Online 5 Introduced 07/02/08 N/A (2) N/A (2)
npower Sign Online 9 Introduced 17/12/07 N/A (2) N/A (2)
Scottish Power Online Discounted Energy 01/02/08 +15% +14%
EDF Energy Online 5 Introduced 01/03/07 N/A (2) N/A (2)
Scottish & Southern Electric Atlantic Domestic Standard Online 01/03/08 -12% -5%

What do comparison services do when the price rise or fall hasn't taken effect?
When you do a comparison it will be at the ‘post-price-rise/cut price'; comparison services incorporate the new prices as soon as they're announced, not as they happen.
Notes: (1) Energy companies have many tariffs, these rises are their main tariffs, some others eg. online tariffs may move at other times. (2) Some companies launch new online tariffs to replace the old ones, so for the purpose of this table consider the introduction date to be the date of the last rise.

Monitor your suppliers’ prices via the free weekly MoneySaving e-mail

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How comparison services work

The cheapest supplier for you is calculated by a complicated algorithm which depends on where you live, and the quantity and type of energy you use. Web and phone based comparison services do this for you.

Just plug in your address and usage (use the Kilowatt hours on the bill rather than the cost to improve accuracy) and they tell you which supplier is cheapest. Yet even if you don't have a bill or have just moved in, most comparison services can still estimate for you.

How they earn their money

Comparison services are paid between £30 and £60 per switch from the energy companies; in other words they're referral businesses. In itself this isn't actually a problem, as it doesn't add costs to the consumer, plus consumer group Energywatch has an accreditation system for website, not phone, services, setting minimum standards.

Yet these are commercial beasts, and thus there are differences between them; in functionality; inclusion of niche players and the treatment of ‘initial discounts'; and some concerns that one or two tweak results at the edges for their gain. Yet overall, it's better to use them, than to simply listen to the energy companies when they tout ‘we're cheapest'.

Why do they only pay cashback via this site?

In the early days of the site, back in 2004, a comparison service boss asked me, “how can we be your top pick?” Flippantly, I replied “pay customers some of your cut!” and surprisingly it agreed to a trial, but only for users of this site, so as not to cannibalise its existing custom.

That was the start, and as this site's grown, with now over 3 million users a month, they all want a piece of the pie; hence each year there’s a price war to be the site’s top pick cashback provider. Yet still in the main it's only links from the site, or for those who use the phone service and quote the deals here.

BEST BUYS: The Top Energy Comparison Services

The following comparison services are my top picks, assessed on a mix of feedback from MoneySavers, cashback (or wine), inclusivity of tariffs, and functionality.

Cashback's usually paid 45 to 90 days after you sign up, but remember it's only paid when the comparison service actually administers the switch for you, otherwise it doesn't earn anything, so it can't cut you in. Do remember all but one of these cashback deals are specific to the links below; go direct and they're not offered.

If you’re confused as to what type of tariff to pick, see the picking the perfect tariff section below.

bullet The Overall Top Pick.

Over the years Energyhelpline* has consistently received good feedback, and has some of the most inclusive functionality. It pays cashback of £15 per switch; which means switch to dual fuel (gas and electricity together) and it's £15 or switch to a separate gas and electricity supplier and it's £30 (joint highest).

bullet Top for Cashback.

The winner depends on which deal works out cheapest for you.

Electricity only: Moneysupermarket* pays £17.50

Separate gas & electricity providers: You can get £30 (£15 per fuel) if you're switching to separate gas and electricity suppliers via Energyhelpline*, Energylinx*, and UK Power*. Yet, they only pay £15 (UK Power £20) if you switch to dual fuel.

Dual fuel: This means you get gas and electricity from the same supplier, Moneysupermarket* pays £30.

bullet Get a voucher for 12 bottles of wine worth £40.

Rather than cash, Uswitch* will give a voucher for 12 bottles from Virgin Wines when you switch to a dual fuel tariff. You get six red and six white; with a maximum of one per household. Don’t worry you don’t need to buy anything else from Virgin to redeem it.

Officially the wine’s worth over £50, yet roughly equivalent plonk can be had from supermarkets for about £40. Not being a big wine drinker, I asked some of the MSE Towers team to test it (hard life innit?) and the view was the wine was mixed quality, some mmmm and some yuch.

How much cashback will you get?
Cashback Energy Service
Switch to separate Gas & Electricity Suppliers
Switch to Dual Fuel
£30
£15
£30
£20
£30
£15
£17.50
£30
-
£20

Cashback updates will be in the free weekly MoneySaving e-mail

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You may’ve noticed, there’s no inclusion of some of the charity donating comparison switch sites, such as Switchandgive which pays £20 to charity for dual fuel switching. That’s because if you switched via the sites above, got the cashback and donated it to charity, the tax advantages of you donating mean the charity gets more (see the increase your charity giving article).

Don't use these comparison services for other things


Theses sites can also include commercial comparison services for credit cards and home phones. Yet the articles here, usually substantially undercut them (see UK Home Phones and the Credit Cards articles).

Are you supplied by an independent gas transporter?

Independent gas transporters (IGTs) are often used by constructors instead of Transco (National Grid) in new build properties as they charge less to fit pipes. One in 20 people are supplied by them instead of Transco.

If that’s the case you may have to pay £30-£40 more on top of any comparison quote as the gas provider uses both pipe's so must pay Transco and the IGT to supply gas to your house; and this charge is passed directly on to you.

How to tell if you have a independent gas transporter

If the MPRN (the meter point reference number, unique to your house) on you bill is 10 digits long and starts with 74 or 75 this means you are supplied by an independent gas transporter. If you're not sure Energylinx has a useful tool you can use to check.

Is it still worth switching?

Switching at the right time can save you around £150/year, so you should still save. All providers, except British Gas charge if you have an independent gas transporter; so simply do a comparison and if it's less than £40 compared to the cheapest provider opt for it instead. Occasionally it may mean you can’t switch to certain suppliers.

Additional cost of switching if you have an independent gas transporter
Supplier Approximate value of charge per annum How levied? Any differences between IGTs?
British Gas N/A N/A N/A
EDF Energy £40.74- £71.54 (1) Embedded in tariff No
nPower £31.50 (2) Embedded in tariff No
Powergen £42 Shown as an additional daily charge / £10 per quarter No
Scottish & Southern Electric (3) Variable (1p to 12p per day) for customers on certain fixed price deals Unknown Variable (1p to 12p per day)
Scottish Power £42 Increased standing charge or embedded in tariff No
(1) surcharge applies to gas-only customers and is approximately £71.54 for low users (10,000 kWh per annum), £53.58 for medium users (20,500 kWh) and £40.74 for large users (28,000 kWh). (2) has a Pre Pay Meter IGT tariff which has a £30 additional annual standing charge. (3) SSE removed the surcharge for most of its domestic customers as of 1 May 2006, with the exception of customers on certain fixed price tariffs. Source: Energywatch

Picking the perfect tariff

When you’re using a comparison service, there are still decisions to be made such as do you want a green tariff, capped tariff, and the length of the service contract. The following tips should help you choose:

bullet Is there someone aged over 60 living in your home?

Any home with at least one resident aged over 60 can access Powergen's special Staywarm dual fuel tariff, which sadly isn’t included by the comparison site. Uniquely, the bill doesn't depend directly on the energy specifically used, you pay a fixed tariff over a year, this gives peace of mind that turn the heat up and you won't pay more. For more read the Staywarm additional briefing.

bullet Do you want a Green Energy Tariff?

Luckily green tariffs are now almost commonplace; most suppliers offer them. Green tariffs are defined by the fact that they're either ecologically produced or a proportion of the money is put towards ecological sources.

Yet this is one area where going green and saving money diverge, so it really is a question of your personal politics. The cheapest green tariffs cost more than the cheapest standard tariffs. All the main comparison services allow you to do a comparison only of green tariffs if you choose.

bullet Are you considering a price capped tariff?

A number of energy suppliers offer capped tariffs, which guarantee your price won't rise for a fixed period, usually two to four years. You can specify these as a comparison option.

Yet, the cheapest capped tariffs are more expensive than the cheapest uncapped tariffs. Whether they’ll be good value over their life is impossible to say, as it depends on competitive pressures and movements in the wholesale gas and electricity price markets.

Therefore more important is to look at your own finances when you decide; the key question is 'how much surety do I want?' If peace of mind is important, as you're on a very tight budget, then a price cap would enable you to at least have surety of knowing the payments won’t rise. Better to end up having paid a wee bit more than be pushed over the brink.

bullet Check you won’t be locked in.

Until late 2007 energy companies weren’t allowed to lock you in. The regulator Ofgem then decided that the market was competitive enough and thus companies can now require you to sign up for a year's contract. Most don’t but do check before you sign up; it’s always better to have the freedom to ditch and switch.

bullet One possible way to up the cashback.

While comparison sites offer cashback, occasionally some energy companies will pay even bigger amounts if you switch directly via their websites or via cashback websites.

Therefore for the ultimate finesse, first use the comparison services to find the cheapest, then check the winner's website to see if it offers cashback. If not you may be able to buy it and/or go to the Top Cashback Sites and see if they will pay out too.


Size of the Savings

For a London family who've never switched, are billed quarterly, annually spending £1,200 on gas and £900 on electricity, the cheapest equivalent service would save them £265 a year including cashback. If the family also started paying by Direct Debit, then the saving would be £450 plus of course there's cashback.

Typical Savings for a family spending £2,100/year

Gas Electricity Total Cashback Total saving

Current – billed

£1,200 £900 £2,100 N/A N/A
Switching to the cheapest
Billed - Dual fuel
£1,895
£1,895 £30 £235
Billed - Standalones £1,088 £777 £1,865 £30 £265
Direct Debit - Dual fuel
£1,694
£1,694 £30 £436
Direct Debit - Standalones £1,036 £645 £1,681 £30 £449

To ensure you stay up to date on this, all changes will be in
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Contacts
Always double check the product details before signing up to them
Spotted a brokenlink/out of date info? Let me know at brokenlink@moneysavingexpert.com

LINKS THAT HELP THIS SITE (all have a * in above article)
(this has no impact on product or recommendation - see explanation below)

Energyhelpline Cashback 0800 074 0745, Energylinx Cashback 0800 849 7077, UK Power Cashback, Uswitch Wine, TheEnergyShop Cashback, Moneysupermarket



Explanation (of * links)

How this site is funded. Two types of contacts are listed. The first, which all have a * within the main body of the articles, help MoneySavingExpert.com stay ad-free and free to use, as they're ‘affiliated links' which invisibly take you usually via affiliate linkage or commercial money sites, which then pay this site. The second type doesn't help and therefore doesn't have a *.

You shouldn't notice any difference, the links don't impact the product at all and the editorial line (the things I write) is NEVER impacted by the revenue. If it isn't possible to get an affiliate link for the best product, it is still recommended and still included in exactly the same way. For more details read How This Site is Financed.


LINKS THAT DON'T HELP THIS SITE

(please only use if necessary)

No * Link Available:
Grant Funding Search Service, Staywarm, Energy Saving Trust, Switchandgive

Duplicate links of the * links above for the sake of tranparency, but this version doesn’t help MoneySavingExpert.com: Energylinx Cashback, Energyhelpline Cashback, Uswitch, UK Power, The Energy Shop


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