Get cheaper energy by switching provider
Image courtesy of sAeroZar
Companies that supply America’s electricity and natural gas love to have loyal customers more than anything else. But all too often that loyalty is not repaid by the energy suppliers and customers who have taken their supply from the same source for a long time might find they are missing out on a better deal elsewhere.
Trying to leave your energy supplier in order to take advantage of better deals elsewhere is, however, a far from simple process. It shouldn’t be that difficult on the face of it, but the energy suppliers themselves work hard to keep their customers and they won’t let you switch to another supplier without first facing a barrage of questions, some fiddly paperwork, and the occasional administrative fee when you seek to cancel your existing energy agreement.
The message from the experts is to persevere with the time-consuming act of changing energy suppliers, because it can save you some serious cash in the long run. The savings the average person can make by switching suppliers is around $300 per year, according to price comparison website Moneysupermarket.com.
“Anyone still loyal to their incumbent supplier is over paying for their gas and electricity,” said Moneysupermarket’s Utilities Manager, Scott Byrom. “At a time when households are feeling the pinch from the rising cost of living, people are still burning money by not shopping around, using comparison sites and switching to a much cheaper deal.”
By collating various companies’ gas and electricity prices moneysupermarket offers an overview of the utilities market and helps people to find the most bang for their buck.
The cheapest energy deals out there offer customers less by providing facilities such as paperless billing and prices based on actual usage rather than estimates. Industry experts also recommend that people find energy suppliers who can offer natural gas and electricity and benefit from lower prices.
Switching energy supplier might require a number of lengthy phone calls and people leading busy lives will find it far easier to stay with their tried and trusted energy supplier. But this approach is unlikely to be the most financially prudent option.
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8 Responses to “Get cheaper energy by switching provider”
September 19th, 2011 at 11:47 am
I have never lived anywhere that I could choose utilities providers. One company owns and services the lines and that’s who you get. That gas and electric have to have pipes and wires to get to you… I can’t imagine more than one company having gas lines in our area. I’ve lived in Nevada, OK, SC, AR, TX, and CA. Anyone live where this is a choice? Telephones, maybe, utilities, no.
September 19th, 2011 at 12:23 pm
We changed suppliers of electric power just a few months ago. Yes, I got a much better price than I had been getting from my old supplier. I did sign a 2 year contract with the new supplier. I got in the mail last week an offer from my old supplier to match the new price and give me $250.00 credit if I will come back. I am not going to do that right now because I would have to pay a fee to get out of the contract I signed.
September 19th, 2011 at 6:05 pm
Here in San Diego there is one energery provider use them or go with out. They are a bunch of crooks, you need to watch your bill really careful or they will get you. Few years back I had it set up for them to withdraw my bill amount from my checkng, next thing I know they are taking money out 8 months in advance. Thanks guys !
September 19th, 2011 at 9:23 pm
Lots of places still only have one provider, even in states that passed a law allowing for competition, they usually included exclusions to certain types of energy providers.
For those of us with choice, it pays to call around every 6 months unless you are under contract. Also usually your new provider will cancel your old service for you, always ask of course, but his allows for seamless service. At least that is how it happened when I changed my electric service.
September 19th, 2011 at 9:56 pm
We don’t have a choice now, but we live way out in the country. I think people in and around the more urban areas are more likely to have options. We did have several choices in Ohio, and we lived in a small town.
September 20th, 2011 at 11:08 pm
We have a Co-op here where we live so switching is not an option for us.
I do however look for ways to save all the time. Making a conscientious effort to unplug as much as possible.
September 21st, 2011 at 9:42 am
This is so true for many things not only utilities. It seems that if you’re with any company for too long, eventually you end up paying more than you would if you switched. Just look at insurance. Also, you can often take advantage of switching-promotions where signing up with someone new will give you discounts or added perks.
September 21st, 2011 at 1:05 pm
I still get my bill from the same provider who owns the lines, but my supplier is different. How that really works, I have no idea, although I suspect that the provider has to purchase their electricity in percentages relative to the number of their customers who have selected each supplier. So if 30% choose supplier A and 70% choose supplier B, then Electric Company has to buy 30% of the electricity it purchases has to come from A and 70% from B.
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