Is your tariff end date approaching?
How to avoid paying more for energy
Your energy tariff may provide a fixed or discounted rate that you have come to count on. What would you do if your energy costs increased suddenly? Higher energy costs can be a major burden on a person or family’s resources, which is why so many households take the time to secure the lowest energy price possible.
However, if your energy tariff only provides the discounted or fixed rate for a certain period of time, then you could end up paying a lot more for energy once that time has lapsed. As your tariff end date approaches you should consider your options carefully to ensure that you select a new plan or supplier that provides the right conditions and the right price to suit your need.
Although standard plans are often expensive, many energy providers also offer reduced cost plans, such as online plans. In the past, customers could rely on alternatives to standard plans to help them manage the rising cost of energy. In days gone by, if your current tariff was going to end then you could relax, knowing that there was another online energy plan that would likely offer the price and conditions that you need.
Unfortunately, increasing global energy costs have threatened this price security. Customers used to have six best buy energy tariffs to choose from, offering an average of £218 in savings over the average standard plan. Recently, however, three of these six tariffs have been eliminated. Now, consumers have fewer options and the average savings have shrunk to £184.
Moreover, the same conditions that encouraged the three energy providers to eliminate their best buy tariff, are also impacting the remaining three. Although British Gas and the other providers have not yet announced that they will be making changes to their best buy tariff, energy expert Tom Lyon of uSwitch.com is concerned that it is only a matter of time.
Currently British Gas provides an online price at a market beating £895 a year. This offers even greater savings than the average best buy energy tariff. Customers who are able to switch to this tariff may well consider doing so, and doing so before it is too late.
But what about those customers who are facing a tariff end date at some point in the future? If you are in this situation, your decision may be a bit more difficult. Your first option is to wait until your tariff ends and then choose a new plan. Although British Gas has not announced that they will be eliminating this tariff, Lyon suggests that it would be prudent to consider other best buy eliminations a fair warning. It is possible that British Gas will defy the forces behind the current trend and continue providing inexpensive energy. However, if the thought of paying standard energy prices is frightening to you, then you may want to consider making the switch even before your current tariff end date.
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