Concerned about climate change and want to help stop global warming? Well, you can do your bit to create a more secure and sustainable future by switching your electricity supplier to one that sources renewable energy.
Energy prices are expected to rise in 2010, following a small drop in 2009, and although it may seem like a lot of extra hassle, it can pay to look around for an alternative gas and electric supplier for your needs.
There are currently more than 15 different suppliers to choose from, but the biggest names in the business are British Gas, Scottish and Southern Energy, Scottish Power, E.On, nPower and EDF Energy. The supplier with the cheapest tariff overall is currently nPower, which has recently overtaken British Gas and new energy supplier Ovo.
However, those signing up to its Web 17 and Sign Online 17 plans will have to pay exit fees if they leave the tariff before 31 March 2011, so it’s always worth reading the small print before going full steam ahead.
Going green
Remember that it’s not possible to source ‘green gas’ – green only refers to your electricity source. Natural gas is a fossil fuel, which emits CO2 into the atmosphere when burned. Switching to a green tariff won’t always save you money, but you will be helping the environment. Think about buying your electricity from renewable suppliers, who source (or even produce) electricity from renewable types of energy generated through wind power, solar energy or electricity produced from hydro-electric power.
How to go about changing your energy provider
Once you’ve decided you would like to switch, carry out some research by comparing services. This is easily done by visiting a price-comparing website like www.moneysupermarket.com and www.uswitch.com Energy prices vary depending on where in the country you live so firstly, you have to enter your postcode. Next, you need to supply information on how much you are currently paying for your bills, your current supplier, the plan/tariff you are on and also how you pay your bills.
The websites will produce a list of suppliers and specific plans based on the information you have provided. Some will give you a list of companies that will save you money based on how much you are currently spending; others go one step further and take into account the price you are most likely to be paying over 12 months with your current supplier, and then find a better alternative for you.
Although the reason you probably want to switch is to save money, it’s important to look beyond financial savings alone. If the savings end up being small (say, £50 a year) and you are switching to a supplier with a poor service, it may not be worth your while. Visit the website of Energywatch, the independent watchdog at www.energywatch.co.uk which features details of complaints against providers so that you know which ones to steer clear of.
Choosing a provider that offers discounts for paying promptly or for paying by direct debit is also a good and easy way to save more money. Most online comparison sites will offer a service ratings system to help you choose. Once you’ve made your choice, the switching process itself is very simple. You can either call your existing provider to let them know that you are going to change, in which case they may offer you a cheaper deal. If the deal is good, it may be worth staying; if not, you need to contact your new supplier or just follow the guide on the comparison website that you used.
Alternatively, you can get the website you have used to help you find a new supplier to do the admin for you. They will initiate contact with your new supplier, who in turn will contact your old supplier for you. You then simply have to take final meter readings, pay your final bill and cancel any direct debits you may have set up previously. The whole switching process should take between four and six weeks and there should be no disruption to your energy supply at any point during
the process.
How much could you save?
It is estimated that consumers can save an average of £250 a year by switching. The website uSwitch says that 11% of its customers saved £425 a year by changing supplier. Most suppliers will give you money off for paying by direct debit, signing up to an online plan (where you no longer get paper bills) and for signing up to dual fuel (which is where one supplier provides both your gas and electricity). Most UK suppliers are dual fuel.
Long-term planning
The deal that you have secured, as with other deals like mobile phone tariffs, may not be the most competitive a few months down the line, so it is best to keep an eye on your bills and the prices you are paying. Keep checking the comparison websites and if you feel there is something even better out there, or your supplier has suddenly jacked prices up, switch again.
One downside of switching supplier is that in some cases, in the time it takes you to make the change, your new supplier may have raised prices. If that does happen, don’t be too distressed; wait a while and change again after some time. You can change supplier every 28 days (although you probably won’t want to do that) but make sure you are aware of any exit charges each time you do switch.
photographs: getty images
