So we now have a full set of energy price reductions by the big 6: here are the scores on the doors.
This downward movement in prices has been brought about by the reduction in whole sale gas prices and some say this should have been done several months ago when they first started to reduce.
Some suppliers have of course purchased their wholesale gas on a forward price, meaning that reducing prices is more difficult as they will be committed to paying more for their gas: they did this at a time when wholesale prices were increasing significantly, so they tried to avoid future increases, as these recent reductions were unforeseen.
Oil prices have plunged and whilst we have seen the benefits at the petrol pumps the same can’t be said for household energy costs.
If you fixed your energy costs sometime ago hopefully you opted for the option to switch without penalty, so take care and check what, if any, the financial penalties are before switching.
The Ofgem website has all the details of how the wholesale energy markets work and it’s their job to ensure that any reductions are passed on to the consumer.
How to secure lower energy prices
Winter is always an expensive time of year for bill payers, so it is understandable that you are eager to find out when you will have access to lower energy tariffs.
The drop in energy prices will increase competition in the market and it is more likely than not that suppliers will be fighting for your business, resulting in increased availability of cheaper energy deals.
Compare and switch energy suppliers online to access lower tariffs
One of the best ways to ensure you are getting a good deal is to compare dual fuel prices online. This will allow you to see which energy supplier is willing to offer you the best deal on your gas and electricity.
Getting your gas and electricity from a single supplier is much more convenient (as you only have to make one payment each month) and will usually work out cheaper. You may also find that by comparing and switching your energy supplier online, you are privy to extra discounts.
Although the prospect of switching energy suppliers may seem a little daunting, it’s actually very easy. There are no physical changes involved, as you will continue to get your gas and electricity through the same pipes. The only difference is that you will pay a new supplier a lot less money each month!
Table from the BBC