Households should switch energy supplier in order to save money, urges Energy Secretary Ed Davey
A new survey from the Department of Energy and Climate Change has revealed that in the year up to March 2013, 84% of people didn’t switch energy supplier.
Homes and businesses which don’t regularly review their energy prices are unlikely to be on the most competitive tariff and have the cheapest energy rates possible.
Mr Davey claimed on average, by switching energy supplier homes could save around £158 per year, however at Love Energy Savings we could save you up to £270 per year. Business on average save up to 40% per year by switching energy suppler.
He said: “When consumers are feeling the pinch, it’s not right that households, including the most vulnerable, are put off switching or engaging in the energy market.”
The report highlighted that 88% of adults are concerned about steep rises in energy prices, which raises the question; why is this figure so high but the switching figure so low? It would imply there is something stopping these people from taking action to lower their energy prices.
By taking Mr Davey's advice and switching energy supplier, the 9 out of 10 people who are concerned about rising energy prices could change to a cheaper provider and lock their prices at today's rates with a 3 year fixed tariff.
Mr Davey believes his Energy Bill will help more of those who are concerned about their prices take action.
He said: “[Ofgem’s reforms] will make the market simpler and fairer, and we’re using the Energy Bill to make sure these reforms are not delayed or frustrated.”
“I’m dragging energy bills into the 21st Century by requiring suppliers to include electronic information that will help millions compare and switch at the swipe of their smart phone.”
Mr Davey added: “I want to turn non-switchers into savvy-switchers.”
Mr Davey’s approach seems to be to make switching easier in general, however, by specifically targeting those who are technologically capable (such as smart phone users) he may be missing out of the vast majority of the 84% who haven't switched and are perhaps less likely to be using smart technologies, such as the old or struggling families.
The survey also showed there is growing support for renewables as well as being more energy efficient. The vast majority of respondents were concerned about the UK being too dependent on foreign electricity and gas (79%) and there not being enough investment in alternative energy sources (75%).
If you haven’t reviewed your energy prices recently there is a good chance your gas or electricity prices aren’t as cheap as they could be.