Electricity Prices

Are all electricity price comparison services identical?

Energywatch sets minimum standards, but there are still substantive discrepancies. Some exclude niche providers such as Telecom Plus, Equigas and Equipower. Others lack functionality and have data updating issues.

Look out for the following issues when using an energy price comparison site to reduce your utility bills:

  • Use Kilowatt hours to compare electric price. This info will be on your electric bill and provides the most accurate comparison.
  • Dual Fuel isn’t always cheaper. Logically dual fuel (gas and electricity from the same supplier) should be cheaper, and while it often is, it isn’t always. Compare the cheapest standalone suppliers too.
  • Over 60s can get fixed prices regardless of their use. Any homes with at least one resident aged over 60 can access Power-gen’s special Staywarm dual fuel tariff. Shamefully no price comparison services include this properly, as its price is based on the number of bedrooms and residents in the house, rather than how much energy is consumed. Sadly, it has recently introduced usage limits, so not everyone can access it. These originally applied for both new & existing customers, but now high-using existing customers will be allowed to retain the package (full details). StayWarm is an excellent scheme for some. If you’re eligible compare its cost to the comparison service’s best result and, unless Staywarm’s over 10% more expensive, use it as it provides fixed price peace of mind and the knowledge you can turn up the heating without increased cost.
  • Direct Debit is cheaper. Fixed monthly direct debit payments 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). Regular electric meter readings should reduce overpayments.
  • Minimise energy usage. The Energy Saving Trust has free guides on cutting power usage on the most common electrical and electronics items, and a special service that finds any possible grants for you.
  • Green Fuel. It is possible to elect to compare only green energy tariff prices (either ecologically produced or where a proportion of the money is put towards ecological sources).
  • They don’t deal with home heating fuel/oil.
  • Avoid comparison services for telephone. While good for energy, many of these gas and electricity comparison services purport to offer best buy comparisons for home phones. Yet it’s much more complicated market with many more providers, and all of them miss the market’s cheapest providers; avoid them.

Energy prices rises are almost perennial. The best time to switch electricity is when there is a level playing field, i.e. after all the main electricity suppliers have just announced price hikes (or price drops) – it’s a tricky judgement. To keep on top of electricity price rises, doing a comparison should be an annual task.

How much can your electricity costs be reduced?

For a Blackpool family who have never switched, are billed quarterly, annually spending £700 on Gas and £560 on electricity, the cheapest equivalent service would save them £180 a year. If the family also started paying Direct Debit, then the saving would be £340.