British households are being issued an urgent warning to scrutinise their energy bills immediately, as a leading expert reveals that proactive consumers could save hundreds of pounds during the ongoing cost of living crisis.
Winter Price Squeeze Intensifies
With winter's grip tightening and temperatures plummeting, energy usage across the UK is soaring as people turn up their heating. This seasonal surge coincides with a 2% increase in the energy price cap implemented last month, creating a perfect storm for rising household costs.
Stephen Hankinson, an energy specialist from Electric Radiators Direct, is spearheading the call to action. He emphasises that a straightforward review of your current energy arrangements could lead to substantial savings. Some households could save up to £315 per year by taking his advice.
How to Secure a Better Energy Deal
The cornerstone of Hankinson's strategy is shopping around and switching providers if a cheaper alternative is available. With the average annual heating cost standing at approximately £1,755, finding a supplier that matches your consumption level is crucial.
The first step is to identify your current tariff. "If you’re unsure of what tariff you’re on or when it ends, you can check a recent energy bill or log into your account online, and it should be clearly listed there," Stephen explained. "Once you’re aware of these details, you can compare deals and lock in a better rate."
He highlighted a common pitfall: being stuck on a standard variable tariff (SVT). "If you have been on the same tariff for over a year, it may be likely you could be on the standard variable tariff which, as a default, is one of the most expensive." His recommended solution is a fixed-rate tariff, which means "you pay the same every month, even if energy prices increase," thereby insulating you from market spikes.
The Best Time to Switch and How to Do It
Timing is everything. Stephen advises that the optimal moment to switch is as you approach the end of a fixed-rate contract. He specifically urged those who secured fixed-rate deals in November 2024 to begin their search now. "If you can find a fixed deal less than the October price cap or even less than the 2% increase, you will be saving money on your energy bill," he confirmed.
Energy providers are legally obligated to inform you when your contract is concluding. Crucially, you can switch suppliers within 49 days of the contract ending without incurring any exit fees. "If you have just signed up to a new fixed tariff, make a note in your calendar of when you are 49 days away from the end date, as you can then start searching for the best deals again," Hankinson recommended.
He also sought to reassure those wary of a complicated process. "Switching energy providers itself is simple," he exclaimed. "It shouldn’t take longer than five working days, and your energy supply won’t be interrupted at any point, meaning you don’t have to worry about feeling cold in the meantime."
