Thursday, September 19, 2024

Expert’s ‘smart’ money-saving tip ahead of energy bills surge

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An energy expert has issued advice on how to slash the cost of your energy bills. The UK might be enjoying warm weather at the moement, but with the energy price cap set to increase soon, bills will likely start climbing as well.

UK energy bills are predicted to rise by a staggering £194 annually – with the energy price cap to increase from £1,568 to £1,762 in October. Energy comparison experts at Bionic have looked into how consumers can lower the cost of their energy bills by reducing their usage.

They also analysed whether now is the time for consumers to make the switch to a fixed energy tariff. Expert Les Roberts came up with these simple steps to help people become more efficient with their energy usage.

Another question many have is whether they should go with a fixed or variable energy tariff. A fixed energy tariff means your unit rates and standing charge stay the same for the length of the contract you agree with your energy supplier. 

A variable tariff is usually a supplier’s default rate, or standard variable tariff. A variable energy tariff means that your unit rates and standing charge can increase or decrease. 

Les said: “When it comes to making the switch to a fixed energy tariff, the most important thing to understand is that price-capped tariffs are variable, and the prices change every three months in line with the cap. 

 “If you do find a deal with rates below the new price cap rates, then it could be worth considering making the switch as we don’t know what will happen to energy prices in the furure. However, it’s important to remember that price-capped tariffs change every three months in line with the price cap so a deal that looks good now could end up being more expensive if energy prices drop later in the year. 

“It’s also worth remembering that the notice period for ending your current contract differs between suppliers. It’s worth checking your supplier’s requirements before switching.  

“If you’re a business owner, remember that there’s no price cap on non-domestic energy contracts. If your current contract is coming up for renewal then it’s worth comparing quotes and fixing your rates to give yourself bill stability and protect against future price rises.”

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