It used to be in the UK that energy companies were state owned and everybody was supplied by the same company. However, with the privatization of energy in the 80s and 90s, the market was opened up to a huge range of suppliers. The idea was that increased competition would improve service and help to lower bills.
However, central to the success of this idea is the ability to switch between suppliers. So, if you feel you can get a better energy deal or service elsewhere, you can simply switch your supplier to a preferred alternative.
As the energy industry was de-privatised and opened up to the market in the 1980s, a new government regulatory body was set up to oversee the businesses entering this market. Among many other responsibilities, including setting price caps, Ofgem is also in charge of regulating the switching process. Founded in 1986, it makes sure that energy companies are abiding by all the relevant laws relating to switching of services.
But just how do you switch and how can it save you money?
How switching energy suppliers helps save you money
With more than 50 independent energy suppliers in the UK offering different gas and electricity tariffs, there is a huge choice for consumers. Each company has its one specificities, notably regarding their customer service, and its own list of tariffs with different kinds of invoicing methods (debit, cash, pay as you go), of duration (standard, 1/2/3 year fixed) and of pricing (fixed rate, variable rate). You can simply choose one that suits your needs.
This level of competition also means pricing structures are different, meaning you could save on your energy bills by switching to a new provider. Find a better deal elsewhere and you can simply arrange for your supply to be moved over.
How to switch energy provider?
With so many suppliers and tariffs out there on the market, it can be a bit confusing trying to find the best deal for you, which is where using papernest can help. Our team can help you find the most suitable tariff and take care of all your switching needs. Just give us a call to find out more on 0330 054 0017.
Why is it beneficial to switch energy suppliers often?
Of course, once you have switched don’t just assume that you will always be on a good deal. New tariffs come out all the time and most fixed rate deals expire after 12 or 24 months. This usually means you end up on the more expensive standard variable rate. If this is the case, you should try and switch to another supplier and you could save as much as £300 a year.
Then, within three months of your fixed rate deal ending you can make another switch and get a better deal.
Why switching works?
Switching supplier works because:
- Suppliers offer good fixed rate deals to lure in new customers
- You can move away from expensive standard variable rates without paying any exit fees
- You can lock into a great value fixed rate deal and ensure you know what you are being charged for the duration of the deal
To find out more about switching, get in touch with a member of the papernest team.