Switching energy suppliers can be a quick and simple way to reduce your household bills and save yourself some cash. However, knowing when to switch is crucial.
Energy prices generally change in line with increases or reductions to the cost of wholesale oil and coal. These costs can rise or fall, depending on several factors, such as fuel shortages, disputes between countries and wars.
When wholesale costs drop, there is usually pressure on energy companies to pass these savings onto their customers by reducing their gas and electricity prices.
However, Britain’s major energy suppliers tend to increase or cut their prices around the same time. Once one company makes its move, the others tend to follow.
Therefore, you should wait until all the suppliers in your area have made changes to their tariffs and prices before deciding to switch.
Tips on when to switch energy suppliers
Monitor the energy market
Try and keep a close eye on the energy market as this will help you stay on top of any price or tariff changes.
Compare the market
Always compare energy suppliers and the tariffs they offer, especially following a round of price cuts or price hikes, as this will ensure you know which deals are the best are and who are offering them.
Keep in mind that any supplier who claims to be the “cheapest in the country” may not necessarily be the cheapest for you, as energy prices vary depending on the area you live in and how much gas and electricity you use.