Switching energy suppliers might not save you as much as you think
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You may not have noticed, but on 1 January the cost of boiling a kettle went up by just over 5%. But if you have gas central heating the good news is that the cost of turning it on fell by 5.6%, so it will be cheaper to heat your home this month than last. Those changes come in the average cost of a unit of energy under the price cap set by the regulator Ofgem. A unit of electricity now costs 1.34p more, making an average of 27.69p to boil a typical 3kW kettle for an accumulated 20 minutes. Prices vary slightly depending on where you live in England, Scotland or Wales. There’s no price cap in Northern Ireland and one supplier – Budget – is raising electricity prices in January by 4%; others raised theirs in the autumn. You can find useful comparison tables for Northern Ireland at consumercouncil.org.uk.
If you’re on a fixed tariff, the price you pay will not change until the fixed rate comes to an end. But it is impossible to say if it’s worth fixing your energy prices now, as prices are expected to fall later this year. A deal that looks cheaper now may not seem such good value by the autumn. There is guidance at moneysavingexpert.com, with best-buy suggestions, but even its experts are not sure if fixing would be worth it.
If you use a lot of electricity, it’s certainly worth considering how to use less, though. Only put as much water in the kettle as you need for that cup of tea. Unplug chargers you are not using – if they stay warm when nothing is connected, they are using electricity for no purpose. Washing dishes in a full dishwasher will usually cost less than washing them by hand. An electric blanket is cheaper than heating the whole house (though a cold home can develop problems with damp or mould).
Every household also pays a standing charge just to be connected. They rose this month to an average £16.65 a month to have electricity and £10.67 for gas. About a fifth of the typical bill is now standing charges. They may be reduced from April as part of a Government promise to cut typical bills by £150 a year. Details are awaited.