Published On: Sat, Mar 21st, 2015

Millions Paying Too Much for Gas and Electricity

We’ve all looked at our bills from time to time and wondered if the company has made a mistake. While sometimes we’ve just had a particularly cold month, other times you could be better off switching providers. Literally billions of people are paying too much for gas and electricity, and could be saving hundreds of pounds each year.

Gas and Electricity

A competition inquiry found that if we’d only changed suppliers or tariffs, we could have saved hundreds of pounds over the course of the year. If you feel that your bills are too high, it’s worth looking into changing your supplier/tariff to see what can be done. The inquiry found that the people who suffer the most from high bills are the people who struggle to afford it.

The firms that were looked into are the 6 biggest out there, and account for 90% of the market. People have begun to realise that when wholesale prices rise, these big markets raise their prices quickly. Yet when prices fall, they are very slow to pass on the savings.

It is going to be looked into to decide whether the firms are making an excessive profit from this process. If they are, they could stand to be broken up. A shocking 18 million people could have saved over £200 if they’d just switched tariff from the year 2012-2014. Even those who own their own business can save a substantial amount of money from changing tariffs. If you make the decision to switch business electricity you should find you have more budget to play with.

It isn’t clear why customers are reluctant to swap. Many of these customers have been with the same supplier for over 10 years. It seems as if simply sticking with the supplier is the easy option rather than finding a new one. The following kinds of customers are the least likely to switch:

  • Those struggling for money.
  • Those without internet access.
  • Those who are disabled or who care for somebody who is disabled.
  • Those who are less educated.
  • Those who do not own their home.

Common excuses for not switching include:

  • It’s too much hassle.
  • They don’t think there will be much difference.
  • Something could go wrong.

Since the year 2009, prices have risen by 27%. Complaints have also risen along with price. The complaints mainly refer to the price of the service, the level of customer service, and billing.

If you would like to see if you can save money, the best thing to do is search on comparison sites. They will show you where you can make the most savings and give you advice on switching if you need it. Those who have never switched stand to save the most money of all. If you’ve changed before, you’ll save less, but you’ll still save. Going solar requires a big capital to start out, but it can be worth it when you begin to save money.

Take a look online now to see if you are eligible to save hundreds of pounds over the course of the year.