Guide To Switching Suppliers & Energy Efficiency
Contents
1.SWITCHING SUPPLIERS
Electricity Suppliers2-6
Example Case Study 2
Electricity Suppliers in London3
- British Gas3
- EDF Energy3
- E.On UK4
- NPower4
- Scottish Power5
- SSE5
- Other Providers6
Checklist: Things to Consider when choosing a supplier7
More Information on Choosing Suppliers8
How to Switch9
2.ENERGY EFFICIENCY
Energy Efficiency10-14
Insulation 10
Central Heating11
Electrical Appliances12
Cooking and Cleaning13
Useful Contacts15
References15
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Electricity Suppliers
Case Study Why it might be worth looking at who supplies your electricity……..Having retired as an independent baker, Amanda, 74, currently lives in a single-bedroom maisonette in Harrow. She’s never really thought much about her electricity payments and has remained with the same supplier since she moved in 4 years ago. Despite looking over the bills that drop through her letterbox each month and despite feeling the pinch when prices have gone up, she’s never really considered changing because of the perceived hassle and a belief that it isn’t ‘worth the time and effort’. She isn’t really aware of how much electricity she uses but uses a computer daily and has an electric cooker. She has a gas boiler but pays her gas using a different supplier. She currently spends £461.88 on her electricity each year.
Amanda is convinced by a friend that it might be worth comparing her current energy supplier’s tariff online and an online check in Amanda’s postcode area suggests that she could have a different fixed rate provider on a 12-month contract that would save her around £60. The projection on current usage is just £401.36.
Amanda notes, however, that many companies offer a cheaper price if she is willing to set up a direct debit rather than pay upon receipt of the bill. She does this already for her broadband so feels that she would be happy to do this. Now the cheapest offer has a projection on current usage of £366.37.
Upon further investigation, Amanda notices that she can use the same supplier for both gas and electricity. Her gas costs per. year currently amount to £350.04 so she investigates projected costs if she went ‘dual-fuel’. There is now a different cheapest supplier that offers a better deal for a 12-month fixed contract. While her current annual spend is £811.92, the latest dual-fuel plan projection is for £591.25 representing a saving of over £220 per. year and nearly £20 per. month.
She notices that there is no cancellation charge should she wish to leave the tariff in the future and after being satisfied with a review of customer-satisfaction for the supplier, she discovers that most of the process for changing supplier will be managed by the new supplier she is planning to use so is far from being the onerous task that she had expected.
All price quotes using a genuine HA3 Harrow postcode and using the USwitch price-comparison tool under various filters
Electricity Suppliers in London
London residents have a vast choice when it comes to selecting an electricity supplier and, with so many suppliers offering different rates and tariffs; it makes sense to shop around for the best deal. Indeed, by doing so, you could be one of many who could save as much as £230 a year (Straus, 2014) simply by changing supplier.
Since March 2014 this has become much easier as Ofgem enforced publication of ‘Tariff Comparison Rates’ (TCRs). TCR is a single figure representing cost per. kWh based upon a consumption of 3200kWh and includes unit rates and standard charges of the tariff. Even including certain types of discount, TCRs give a useful frame of comparison across all electricity providers.
Furthermore, from a personal perspective, energy companies provide details of where they source their electricity and how they use profits making the choice of energy supplier, for some people, as much an ethical as an economical decision.
When people talk about energy providers, they usually refer to the ‘Big 6’; so called because, between them, they provide for over 90% of the population.
British Gas
The nation’s largest energy provider, British Gas provides a choice of tariffs with ‘fixed price’ and ‘pay-as-you-go’ options. Fixed price-tariffs give consumers the knowledge that their bills will not escalate within the fixed period but they do carry an exit-charge of £30-£50 if consumers wish to end the contract prematurely.
Some tariffs are also only available to consumers using ‘British Gas’ for both gas and electricity – ‘dual fuel’.
The TCRs from the website for electricity supply only (without gas) are 15.52p (standard: variable) and 16.46p (fixed price Jan’ 2017) but prices will vary depending on postcode, consumption and payment-method but are likely to be higher in London*.
British Gas report that they invest in ‘Britain’s skills and communities’ with a focus on ‘supporting communities’, ‘helping young people into work’, ‘helping those in need’ and ‘focusing on safety, environmental impact and responsible procurement’.
Their fuel-mix is comprised predominantly of natural gas (34%), nuclear (28%) and coal (26%) with 10% being obtained through renewable energy sources.
Quotes and further details can be found at:
EDF Energy
EDF produce around 20% of the nation’s electricity with fixed price (marketed as ‘Blue’) and variable options. Different tariffs have different payment options; direct debit cash/cheque, prepayment, and are all available as dual-fuel tariffs.
The TCRs from their own website for an SE1 6ES address for electricity are 16.89p (fixed until July 2017), 14.19p (fixed until February 2016) and 16.08p (variable rate). At typical use, the difference between the most expensive and cheapest options equates to a difference of nearly £90 per. for electricity alone*.
EDF developed its mission in 2013 with six separate ‘ambitions’; to achieve ‘’zero harm’ to people’, ‘to be the best and most trusted for customers’, ‘to deliver safe, secure and responsible nuclear electricity’, ‘to achieve strong financial and ethical performance’, ‘to power society without costing the Earth’ and ‘to empower [their] people to be a ‘force for good’’.
Their fuel-mix is predominantly nuclear (74%) with 8% being obtained through renewable energy sources.
Quotes and further details can be obtained from:
E.On UK
Previously branded as Powergen, E.On UK is part of the E.On group – one of the world's largest investor-owned power and gas companies. E.On UK offers a variable tariff (‘E.OnEnergyPlan’) and a choice of fixed tariffs that includes one designed for those over 60 through a partnership with Age UK.
Example TCRS from their own website for an SE1 6ES address for electricity alone are 17.14p (E.OnEnergyPlan), 14.76p (Fixed 1 year v7 – 12 months fixed term), 17.46p (fixed 2 year v5) and 17.14p (Age UK fixed term – 24 months fixed terms). All these values could be subject to discounts with a specified payment plan (e.g. direct debit), opting for paperless billing or using E.On as a ‘dual-fuel’ provider. Exit charges apply in some cases*.
E.On’s website reports that they ‘are improving [their] gas, coal and oil-fired power stations and are producing more energy from renewable sources like wind and water’. They also report that they want to make energy ‘simpler’ by talking to customers, introducing clearer bills and making tariffs easier to understand.
Their fuel-mix is predominantly coal (52%) and natural gas (31%) with 8% being obtained through renewable energy sources.
Quotes and further details can be obtained from:
Npower
RWE Npower produces over 10% of the electricity consumed within the UK and, outside of the UK, they are one of the top 5 largest energy suppliers in Europe. They offer 4 tariffs though some are only available through direct-debit payment and their ‘Intelligent-Fix’ is available only to those who purchase a Nest Learning Thermostat (£99) and use Npower for both gas and electricity.
Example TCRs from their website for an SE1 6ES postcode for electricity alone are 15.21p (Online Price-Fix Oct 2015 – direct debit only), 16.88p (Price-Fix June 2016) and 17.98p (Standard SC – variable rate). The latter two could be cheaper by going direct debit and savings could be made by going ‘dual-fuel’ with Npower*.
RWE Npower has distinct functions related to operating a portfolio of power stations (RWE Generation), producing energy through renewable sources (RWE Innogy) and the supply of energy and gas (RWE). Npower Cogen is also one of the UK's leading developers of industrial cogeneration schemes where electricity and useful heat are generated simultaneously.
Their fuel mix is predominantly natural gas (51%) and coal (34%) with 14% being obtained through renewable sources.
Scottish Power
Scottish Power is part of the Iberdrola Group, a global energy company and world leader in wind energy with operations focused in the UK, US, Brazil, Mexico and Spain. Scottish Power has a variable tariff and a choice of fixed tariffs, one of which includes a Scottish Power donation to Cancer Research UK for every month you remain on the tariff.
Their website was not functional at the time of review so example TCRs for an SE1 6ES postcode for electricity alone with payment upon receipt of the bill were obtained through uswitch.com and were 15.71p (Online Fixed Price Energy September 2015), 16.52p (Help Beat Cancer Fixed Price Energy September 2016 online) and 17.09p (Online Standard – variable)*.
Scottish Power report that they believe in ‘making a world of difference’ with 5 commitments; ‘continuing to be a UK leader in renewable energy solutions, helping [their] customers become more energy efficient, being socially aware & engaged in the community, helping customers find [their] best deal for them and listening and making improvements to [their] service’.
Their fuel-mix is predominantly coal (59%) and natural gas (26%) with 13% being obtained through renewable sources.
SSE
SSE (formerly Scottish and Southern Energy) has the second highest number of UK customers after British Gas and has its headquarters in Perth, Scotland. For electricity alone, they have a choice of three tariffs – two fixed and one variable rate.
Example TCRs from their website for an SE1 6ES postcode for electricity alone are 14.74p (1 Year Fixed Price – direct debit only), 16.95p (Fixed Price Mar 17), and 16.95p (Standard – variable rate). The latter two could be cheaper with paperless bills and direct debit payments and dual-fuel deals are also available*.
SSE report on their website that their ‘core purpose is to provide your energy in a reliable and sustainable way’ and that they have led reforms in the energy industry related to ‘being the first energy company to end cold calling’, ‘simplification of tariffs well before Ofgem made regulations in the area’, ‘introducing Customer Service and Sales Guarantees with refunds available where standards have not been met’.
Their fuel-mix is predominantly coal (54%) and natural gas (28%) with 15% being obtained through renewable sources.
Other electricity providers
Whilst the ‘Big 6’ dominate the market, there are many other potential providers that operate within the greater London area. These include the following:
Good Energy
Joint-first in a customer-satisfaction ‘Which’ survey, Good Energy provides a fuel-mix that is comprised entirely of renewable energy sources.
Ecotricity
Joint-first in a customer-satisfaction ‘Which’ survey’, Ecotricity use a greater proportion of customer energy bills to build new sources of green energy than any other energy company.
Utility Warehouse
Coming 3rd in the customer-satisfaction ‘Which’ survey, Utility Warehouse offers ‘bundles’ that combine energy-supply with broadband and phone services.
Ebico
Coming 4th in the customer-satisfaction ‘Which’ survey, Ebico is a not-for-profit supplier of both gas and electricity independently or as dual-fuel.
Ovo Energy
Coming 5th in the customer-satisfaction ‘Which’ survey, Ovo Energy offers a variety of fixed-rate tariffs including 100% renewable energy options.
The Co-operative Energy
Offering fixed and variable options, The Co-Operative Energy has no shareholders and reports that as they are owned by their customers, they ‘share profits with customers twice a year’ and have a ‘voice in how [they’re] run’.
Utilita
Utilita supplies exclusively prepayment gas and electricity with free smart-meters offered to their customers that enable tracking of power use.
First Utility
First Utility was ranked as the largest supplier outside of the ‘Big 6’ in October 2013 and they offer a price promise that, at ‘typical use’, their iSave Everyday tariff price is cheaper than those offered as standard by any of the ‘Big 6’.
* All quotes correct as of 19/08/14
Note: Smaller suppliers may not be required to offer the ‘warm home discount’ and it may be worth checking this if switching.
Things to Consider when choosing an Electricity Supplier
Considerations / Relevance
Dual-fuel options? / Most power companies offer discounts if you use them for both your electricity and your gas supplies.
Fixed or variable payments? / Fixed rates mean your unit rate will remain unchanged for the duration of the contract. This protects you from price-increases during the contract-period but does mean that you could be paying an increased up-front cost for this protection.
Length of contract? / You may want to consider how long you wish to commit to one supplier. Many suppliers have charges if you cancel mid-contract.
Cancellation charges? / As above, many (but not all) suppliers will have a charge for a mid-contract cancellation.
Billing method? / How you want to be billed can affect how much you pay. Many suppliers offer a discount if you are willing to go ‘paperless’ and manage your bills online.
Payment method? / How you pay can affect how much you pay. For example, many suppliers offer a discount if you go direct debit rather than paying upon receipt of the bill.
Standing charge? / The standing charge is a fixed amount you have to pay irrespective of use. Usually, a contract with no standing charge will have higher unit prices for the gas and electricity you use.
Customer service? / It might be useful to research other customers’ reviews of experiences with a prospective supplier. Which and USwitch have both done large-scale surveys recently.
Use of profits? / Some suppliers have shareholders whilst some don’t. Many also use profits for various social benefits.
Fuel-mix? / Energy suppliers differ in how they mix fuel and so have differing environmental impacts.
Other incentives/discounts? / In a competitive market, suppliers often offer other discounts or incentives in certain tariffs that may be attractive
More Information regarding suppliers:
USwitch
Providing a wealth of information on how to switch and offering a tool to enable quick comparison of prices with all energy suppliers to your area.
Website:
Citizen’s Advice Bureau
Providing general guidance on selecting an energy supplier and things to be aware of.
Website:
ElectricityInfo.org
Providing detailed comparisons of energy company’s fuel-mixes, C02 emissions and nuclear waste all with clear tables and graphs for comparison.
Website:
Money Saving Expert
Offering guidance on what to consider when choosing a supplier and with a tool to compare electricity and gas prices in your area.
Website:
UKPower.co.uk
Another service offering a comparison of energy prices in your area.
Website:
How to Switch – Step by Step
Changing your electricity supplier could be simpler than you might think. The following step-by-step guide shows you what process to follow:
Step 1Check the terms of your current tariff. You might incur a fee by cancelling your current deal and you may want to think about delaying your supplier-change until your current deal has expired.
Step 2
Contact your new supplier and say that you wish to switch. They will then give you a date at which the switch can be made.
Step 3
Contact your current supplier and let them know that you wish to switch from the date given in Step 2.
Step 4
On the day of the switch, provide your new supplier with a meter-reading. If you are unsure of how to do this, ask your new supplier. They will be able to give you guidance over the phone depending on whether it is a dial- or digital- display. An online guide is also available at the following link:
Your new supplier will communicate this reading to your old supplier so that your final bill from your old supplier doesn’t extend into your new contract.
Step 5
When you receive a final bill from your old supplier, check that the readings match and, if you are in credit due to over-estimated readings earlier in the contract, ensure that you have been reimbursed.
Step 6
Your new supplier will let you know the date from which the contract has commenced. It can take up to 2-3 weeks for the change to take place. Upon receiving your first bill, check that the starting reading is the same as the final reading from your final bill from the previous supplier.
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Note
If you get your new deal through an online price-comparison site, they will do much of this work for you by communicating with your previous supplier direct!
Energy Efficiency