Could anyone advise me how to recognise the best deal when switching electricity and gas suppliers?
Question:I have checked websights of a number of suppliers and switch companies giving the same details to all and just get confused by the answers and some of the savings estimates I just dont believe.Frequently the same supplier gives four different estimates and in one case they were all greater than that of the estimate given directly from the same supplier. Is it all one great con?
Answers:
Energy usage for homeowners and businesses, are priced on a tier system, normally 2 or three tiers. Price for each tier can vary depending on whether the user is business or homeowner.
Collect your last year's energy bills. For each month calculate the number of units of energy used per tier (should be broken out on each bill). If you have several years’ worth of bills, this will give you more of an average, (however worst case is good too). Also, use current cost for each (if electricity was a penny cheaper last year, use this year's cost, as prospective providers will only provide you current rates.
Then:
1) Compare the cost per unit of your current provider with the cost per unit of the other providers you are considering.
2) Make this comparison for all tiers.
3) Compare the range for each tier for your current provider and all prospective providers.
4) Take your bills, and split your energy usage according to the tier range for all providers.
5) Calculate costs for all providers based on the number of units per tier you "used".
6) Compare total costs for each tier.
It makes no sense to switch to a provider that charges you a penny a unit less for the first tier if most of your current use would be in a more expensive (3-10 cent) second or third tier.
This method provides you the cost for your real energy usage depending on what provider you used. From this you can calculate how much each costs on a yearly basis. Also, check when the last rate increase was for each provider. No point switching to a slightly cheaper provider if they haven't had an increase in 5 years (one's comming soon), if your current provider had a recent increase.
Some of these comparison sites make money from recommendations and therefore are not to be trusted.
Some share the money they make with you as encouragement to use their services.
Sometimes you can get a better deal going direct to the power company.
You can only invest your time in research and at the end of the day go with what seems best.
You can always change again!
look up uswitch for best comparisons.
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