Checked your energy prices recently?

Checked your energy prices recently?

Cooler weather = more energy used = bigger bills!

It’s a good time to see what can be done to keep energy prices and costs down as far as possible. Cooler weather means using more heating energy and we can therefore expect our energy costs to increase. 

Energy is measured in kilowatt hours and each energy bill shows how many kilowatt hours you have used. If you have access to your past bills you can see how many kWh’s you have used.

You can save some costs by keeping the usage of kWh’s down as much as possible by means of insulation improvements, double glazing, shared baths, etc.

 

TIP! But you can also save money simply by selecting a low price that you pay for your kilowatt hours that you use. And, luckily, it’s easy to do this using the Switchwise energy price comparison calculator.

Try it out! Look for the Postcode box (at right or below) and enter your energy information as required to have a look at what savings you may be able to make. If you don’t have exact energy usage available, try using the number of bedrooms as a guide.

Switchwise works with UKPower™ and Uswitch™ to provide a quick and easy price comparison service. Checking energy prices using an online comparison calculator is far easier than doing it manually.

Sadly, there are many people who do not benefit from the lower prices available. Many people are still loyal to their original suppliers without realising how much they could be saving with alternative suppliers for exactly the same energy.

So, try it out now, and I hope you find some great savings for the Winter bills!

 

Will The Big Six Become The Small Six By 2020?

The Big Six may face a loss of a quarter of their customers by 2020 if they don’t improve customer service; will the big six become the small six by 2020? Where this will make room for other smaller suppliers with more competitive tariffs, consumers will still suffer as the average energy bill will be approx 20% higher. A recent report Citi on the changes in the energy market said

“Due to increasing competition we see the market share of the ‘Big 6’ in energy supply declining from 98% in 2013 to below 70% by 2020. When combined with declining  demand and lower margins the total profit pool available to the large energy suppliers could fall [by about] 40% from [about] £1.2bn in 2013 to just £700m.”

Reports like this are grim news for the main suppliers and their shareholders, but a huge inspiration for independent energy suppliers to continue as they are; offering cheaper tariffs. Historically, customer service, or rather the lack of, has been the bugbear of many consumers; energy suppliers didn’t care because they didn’t have to. But now with OFGEM fighting the consumer corner and smaller independent companies coming to the table with no previous reputations, will it force those remaining of the big six to be more conscientious toward their customers needs.

Citi (an American multinational banking and financial services corporation) noted that Centrica; gas and electricity provider under the British Gas label, reported earnings before interest and taxes of more than £600m from residential supply in 2012. They stated

“If the supply market does develop as the current trends suggest and the available profit pool declines by the estimated 40% we may well see some participants simply running their supply business to maximise cashflow in the short term and exit the market at some point,”.

Citi also believes that the the current 70% market share that the big six hold could be reduced to less than 50% in coming years because of the cuts in available renewable energy subsidies twinned with the closure of traditional energy plants. In the past year, the big six’s market share has fallen from 98% to 92% in the last year alone, thought to be partly driven by consumer anger about last autumns price rises.

Independent consultants Cornwall Energy produced figures that indicate customers hold 3.8m accounts with the smaller suppliers and 45.9m with the big six, it will be interesting to see how the balance tips in the coming years.