Energy bills: how to get the best price

Follow these switching and fixing tips to save money on your gas and electricity with little effort

The energy market has been a mess since 2020, with dozens of small firms going bust and the government forced to step in to provide support, albeit limited, in the face of sky high bills.

Well, things are gradually calming down and approaching something you could almost call normal – even if prices are still historically high compared to pre-pandemic rates and before Ukraine was invaded. But after all this time, and all that upheaval, you’ll be forgiven if you’ve forgotten how to go about getting a better deal on gas and electricity.

So I thought a reminder of some things to do and some pitfalls to avoid would be useful.

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Don’t assume the price cap is best

The best thing to do for the last few years has been to stay on your energy provider’s variable rate deal, which has been limited by the price cap. That’s madness compared to before this when I’d have urged you to ditch those rates in favour of fixes.

Thanks to the volatility in this period, most fixes were higher than the price cap limited rate – if you could even find a rate to lock in.

But this year that’s been changing and there are now a small number of fixed rate deals available that are lower than the price cap – which means everyone can be saving some cash on their bills.

There are also some different tariffs that might save you cash, from ones that track the price cap with a discount, to ones that can change what they charge on a daily basis.

However, because of constantly moving wholesale prices, there’s still a chance fixes could be above the price cap, so you’ll need to compare rates to be sure.

Make sure you use a comparison site

It’s strange how something that was so normal in the world of money saving almost became extinct overnight. But that’s what happened with energy comparison sites when things went haywire. You literally weren’t able to move provider in many cases, so comparison services shuttered down, or even went under.

Which means many of you may not have looked at one for a long time. Well, you should. They’re gradually resurfacing and absolutely should be your first step when looking for the best deals rather than just taking a deal offered by your existing provider.

Ideally look for one that is ‘whole of market’. This means you’ll see all the different firms available, not just the ones that pay the comparison sites a commission. Sometimes you need to click a button to reveal those hidden rates.

To get an accurate assessment of your savings, you’ll need to grab your bills to get the name of your current tariff and actual energy use in KW.

Actual bills can be higher or lower

Whether you’re on the price cap or on a fix, your actual bill could vary massively from the number you see in a comparison. It’s the price of the units that are capped or fixed, not the total bill.

The price and saving that come up are just estimates based on your energy use in the last 12 months. They’ll only be true if you use the exact same amount. So if you use more energy in the next year, you’ll pay more than that initial estimate. And use less, and you’ll pay less.

Don’t ignore customer service reviews

Since the gas and electricity you get through your pipes and wires is exactly the same whoever you buy from, it makes no difference who you buy from. But the quality of customer service can vary wildly.

My experience with NPower was so bad there’s zero chance I’ll ever get my energy from them again. Even if they were £50 a year cheaper I’d go for the next best bet – as long as they don’t also have shocking reviews.

Look for extras

Some firms are beginning to offer loyalty perks. Though these shouldn’t be the reason to stick with a provider, if prices are similar they can make the difference. For example Octopus’s Octoplus scheme has given away free cinema tickets and coffees, as well as free energy hours.

Right now the comparison sites don’t appear to be offering cashback for switching, but that will hopefully return.

Check the exit fees

When you’re looking at the different fixed deals on a comparison site, some will have exit fees and some won’t. If two providers offer similar savings on tariffs, but one has no exit fees, it makes sense to go with that one. It means if rates to drop in during the fix you can ditch and switch for those cheaper prices.

Don’t wait until the fix ends to find a new deal

Prices go up and down, even now. And it could be a fix comes along that’s better than what you pay right now.

The good news is if you’ve opted for a tariff with no exit fees, nothing is stopping you from jumping ship early. I actually fixed in May 2024, but can nab a better deal in October!

Or if you’re locked in and don’t want to pay exit fees, you still don’t need to wait until a year is up. You can actually leave any fixed deal 49 days before it ends penalty free.

However, bear in mind when comparing midway through a fixed deal. Most comparison sites will give you an annual projection based on the next 12 months, so that’ll be part of the time on your fix, and part of the time on a current price cap rate. If the latter is way higher than what you’re paying right now, it could skew the annual estimate.

Make a note for when your fix ends

If you don’t move during your fix, you at least want to make sure you’re comparing again when that deal ends.

Ideally put a note in your diary or on your phone for seven weeks before your contract ends. If not, since most switches take five working days, make sure it’s done by then to avoid slipping onto the potentially more expensive deal for a few days.

Take a meter reading before you change deals

Even if you have a smart meter, I’d always submit a meter reading when I’m changing tariff. That’s regardless of whether you’re changing provider or staying put.

Check your final energy bill

Finally, when you move from one supplier to the other, there’s a good chance you’ve paid too much (but only if your Direct Debits were too high).

However, that money won’t necessarily be automatically paid back to you. I’ve had to call up and claim this once the final bill has been settled – often not made easy if your account has been closed.

Of course, there’s also a chance you’ve been underpaying and might have to pay a lump sum. Fortunately when this happened to me last year I had the savings available to pay it.