Households across the UK have been on a crusade to save money by switching energy suppliers this winter, but it seems many people in rented accommodation didn’t get the memo.
Research has revealed that up to £200 a year could be saved on the energy bills of people renting in Britain by switching energy suppliers, according to energy regulator Ofgem. Yet 77% of people renting property have never switched.
Savings To Be Made
Increased house prices and a shortage of properties has had a knock-on effect on the rental market.
Occupants of rented accommodation are paying a hefty monthly fee to live in their home. Add council tax and energy bills to the equation and the outgoings of the average household leaves little disposable income left in people’s pay packets at the end of the month.
Small savings are arguably even more important to the rental demographic, as their outgoings are increasingly high for no-long term return, compared to homeowners whose monthly payments contribute towards their mortgage.
Why Do Renters Stick?
According to Ofgem’s report, 20% of people renting do not realise that they had the option to switch energy supplier.
Once you move into a rented property, it is easy to think the landlord’s choices are set in stone, but this is certainly not the case.
Due to the temporary 6 or 12-month contracts that most tenants are on, many people think switching energy suppliers would be far too time consuming and not worth the hassle for the short time they are renting the property. Yet, new government regulations have vowed to half the time it takes to switch energy suppliers by 2015, enabling consumers to make the full switch in little more than 2 weeks.
In the meantime, switching is still far more convenient than it used to be, so it really is worth doing if you are living in the property for longer than 6 months. Imagine the monthly savings adding up, you could find yourself with a lucrative sum by the end of the year.
How To Switch
For first or second-time tenants living in rented accommodation, switching energy suppliers can seem daunting and complicated.
This is not true, as with the help of energy price comparison sites it is now incredibly simple to find the cheapest tariff and switch energy suppliers. Here at Love Energy Savings, we can help you find the best deal using our online comparison tool, all you’ll need is details of your consumption and current energy supplier.
You could even find yourself making savings within 6 weeks if you take the first steps and make the switch today.
Top Tips For Renters
- Take meter readings on the dates that you move in, and out, of the property to make sure you get the most accurate tariff.
- If you are going to switch energy providers, make sure you inform the landlord. While they cannot stop you from switching, they own the property and it will be written into your tenancy agreement to inform them of any changes.
- Ask your landlord about supplier contract restrictions, such as paying an exit fee which you would be obligated to pay, before you finalise the switch to avoid any unwelcome surprises.