Switching Energy Provider to Save Money .
Considerable energy bill reductions are possible for those consumers switching energy supplier on a regular basis.
In 2020 the Commission for Regulation of Utilities (CRU) calculated that customers who switched energy supplier every year for the last 4 years could have saved :
- €704 on gas,
- €1,097 on electricity
- or €1,696 on their dual fuel costs.
See our latest dual fuel price comparison here
According to CRU figures – the rates of customer switching energy provider in the Irish domestic electricity market are around 12-16% a year. However, it seems that the majority of people are just not interested in shopping around for their electricity and gas supplies. A 2019 survey by the CRU found that 49% of electricity consumers and 55% of gas consumers said they have never switched supplier.
Energy Price Competition
Energy suppliers can only really compete on price because at the end of the day they are all supplying exactly the same products.
So – to attract customers, the suppliers offer new customers cashback or reduced prices usually just for 12 months. Once the cut-price offer expires, you are usually free to switch again.
To get these reduced prices, customers normally have to agree to pay by direct debit and accept e-billing. A deposit is sometimes required for new customers, which can be difficult for some people on low incomes. Also it is sometimes not possible to switch if you are in arrears with your current supplier.
Figures from the UK show that it is usually the more vulnerable customers and those at risk of poverty that are not switching. Elderly people and those on low incomes are the people who have the greatest trouble in meeting their energy costs – but they are missing out on the opportunity to make savings of up to 20% on their annual energy bills.
In our recent electricity and gas price comparison – we found that a typical dual fuel medium usage household that has never switched energy provider could cut their fuel bills by €498 over 12 months by switching to the cheapest deals on offer. (figures from November 2020 )
So – if you are one of those people who have never switched fuel supplier, what is stopping you?
Switching energy supplier is as easy as filling in a simple online form and it only takes a few minutes. There will be no changes to your wiring or gas pipes. The only thing that changes is the company name on the bill and the price.
See Our Electricity and Gas Price Comparison here
Once you have done it once you can switch every year if you want. The savings might not be as big the next time you switch. People should try and treat energy providers like insurance – don’t just continue with the same one every year, shop around and switch to the lowest-priced provider.