Thanks to the competitive nature of the British energy marketplace, you don’t have to turn to just one company for your fuel needs. Even if you have been with one of the “Big Six” companies for as long as you can remember, you can always turn to another company if it can offer you a lower rate. The emergence of many smaller energy suppliers has opened up a variety of fuel tariffs to choose from. Don’t just sign up for the first fuel tariff you find – you can end up spending thousands more than you need to in the long run, and you might also wind up in an iron clad contract you don’t want. Mind these three factors when you are doing fuel comparison shopping.
It Can Save You Money
The key reason to shop the fuel market is to get the best price. The British energy market fluctuates, and costs tend to be higher in the winter months when heating costs are at their peak. If you sign up for a fixed or capped energy tariff, you will see limited or no variance in your fuel rate. On the other hand, variable rates will shift with the market and may increase or decrease without notice. Both types of plans have their advantages and disadvantages. Consider the current energy trends before you choose a plan. If energy prices are on the decline, it’s not a good time to lock in a rate. In any case, shopping for the best fuel tariff can often save you money in the long run if you choose wisely.
There is More to it Than Rates
While finding a key rate is an important factor when conducting fuel comparison, it’s not the only reason to evaluate more than one tariff. If you think the only option is a fixed rate, you may be locked into an 18 month contract you can’t fulfill. When you move house half-way through your contract and can’t transfer service for some reason, you will pay an exit fee that may top 100 pounds. Comparing different fuel plans also lets you take a look at the various discounts on the market. For instance one energy supplier might give you a discount for managing your account online, while others in your area do not.
You Don’t Have to Sign a Contract
Comparing energy tariffs will allow you to see that you don’t have to be in a contract to find a reasonable fuel deal. You can also find contracts of different lengths by shopping the market. Perhaps you can’t commit to a full year on the same rate, but you are able to find a supplier that will let you sign on for only six months. Fuel comparison is the only way to see the big picture of what contracts are out there, and see which non-contract offers might make more sense for you.
You Can Get Help
It’s also worth noting that you can get assistance with your fuel costs in many cases. Whether it be through a discount afforded to customers who use direct debit to pay bills, or a government sponsored program, you can get lower bills if you are struggling to pay. When your energy costs are at least 10 percent of your monthly income, you are likely to qualify for a reduction on your energy bills. You can also sometimes get a single payment from your energy supplier to provide relief when it comes to fuel costs. Compare available discounts and assistance schemes when you take a look at different energy companies.
Fuel comparison is about more than just seeing which tariffs your current provider offers. If you want to get the best deal and also make sure that you’re not locked into an unreasonable contract, you should also consider moving companies. With a knowledgeable understanding of what is available to you, it’s possible to make your fuel costs much more affordable for your family. Consider making your home more energy efficient as well. The less heat and air conditioned air that escapes from your home, the more money you will be able to save in both the short and long term.
Lara Vukelich, the author, has been trying to analse fuel comparison options to get the best possible deal for the winter.
