Gap widens between standard and best deals meaning consumers are paying £305 too much on energy bills

Changing your phone, TV or even your car is almost commonplace for most people. But for some reason changing who you pay utility bills to, seems to be something that is often left unbothered. Maybe it is too boring a subject, or there is a misconception that you cannot just change provider.

Whatever the reason, vast numbers of people are still with the same energy companies they have had for years. It does not seem to matter that the money that could be saved in just one year, could go a long way to paying for a luxury item we all crave. If you knew that you could buy an identical object of the same quality in another shop down the road, wouldn’t you go there instead of paying more at your local store?

It is a fact that the vast majority of customers in Britain (70 %) stay with what are called the ‘Big Six’ companies. Not only that but they use standard tariffs. This is costing them over £300 a year more than they need to have paid.

There is a widening gap between these standard tariffs and better deals that can be found with other providers, or sometimes even the same provider, who fails to inform you of other possibilities.

These larger companies stand accused by the Government of failing to pass on the profits that they gained from worldwide low energy prices, during the past year or so. Profits of the Big Six energy companies apparently increased tenfold in seven years from 2007, and no doubt will continue to rise, according to analysis from the Competition and Markets Authority watchdog. These large energy firms are apparently exploiting their customers by keeping them on the more expensive tariffs, despite significant savings that are available for those customers if they switched.

Some companies do inform their customers that there are cheaper deals available with them, but inertia seems to keep many householders from making the move.

Last year wholesale costs dropped by 30 %, but the big energy companies only reduced their bills by 1.3 % during that same period. There was the suggestion that they were keeping the costs artificially high for fear of Labour imposing a price freeze if they had got in. However, despite that threat evaporating, the standard tariffs still remain high.

The process of changing providers is not difficult; it can even be done more than once if a better deal comes along at a later date.

Energy Switcheroo can provide all the latest information regarding tariffs right across the spectrum of energy providers. It can also help facilitate an easy move, taking any stress out of the process. There is no reason to remain on a high tariff, unless you are fixed in to a deal with restrictions. In any case it is worth making a few enquires, you may be surprised at what you can save over the course of just one year.