Less than 20% of customers are shopping around for cheaper or more convenient tariffs and on average a customer will switch providers once every 20 years.
Abusing Customer Loyalty
However, instead of rewarding customers for this loyalty, the big six energy companies are using the £150 a year extra, that its millions of loyal customers are paying, to lure new customers with cheaper deals. Then a year or so later, when the cheap deals for the new customers run out, the energy companies hike up the charges to claw this money back.
Stephen Fitzpatrick, head of OVO Energy explained, “We’re seeing an increase in the big six selling products to new customers at a loss in order to squeeze out new competition.”
He later added: “It is predatory pricing to stifle competition. “Some 85% of customers are paying too much for their bills to cut the costs paid by 15%. Customers should be spending around £150 a year less.
“This is the biggest problem in the energy sector. You could have two houses next to each other, using the same amount of energy, with one paying hundreds of pounds a year more than the other.”
It is curious to think that with the UK being in one of the deepest recessions in living memory, more people are not shopping around. In fact, when it comes to cutting down on household costs, if your haven't switched before you can stand to save hundreds.
Switch Suppliers or Tariffs
If you still take your gas and electricity from different suppliers then your savings can run into the hundreds of pounds just by making one quick phone call to set up a new deal with only one instead of two suppliers. However, this isn’t the only way you can get a better deal from your supplier.
* As well as suppliers offering you a discount if you opt to receive both fuels from them,
* They will also offer you a discount if you decide to pay by direct debit.
* Moving to an online only tariff is also cheaper for the supplier because they don’t have to send bills out, cutting down on paper costs and postage, a saving which they then pass on to the customer.
* Opting for a fixed price tariff gives you the peace of mind of knowing that you are protected from any shock price rises.
yoursuresave.com has an easy 4 step process for switching suppliers, which is both free and fast. See if you are paying far too much for your fuel today by visiting http://yoursuresave.com/