You are here: Home - Household Bills - News -

Households overpaid £1,000 on energy in just four years

0
Written by: Paloma Kubiak
21/02/2018
UK households have lost out on more than £1,000 of savings in the past four years by staying loyal to their energy supplier.

The average household has stuck with the same energy supplier for four years, which means they may have missed out on £1,232 of savings by failing to switch to a cheaper deal.

But for some households, the overpayments could be even greater, according to Comparethemarket.com’s research.

It found nearly a third (30%) of households have been with their provider for five or more years while 14% admit they’ve been with the same supplier for 11 years or more.

As well as paying more for energy, a number of households don’t fully understand how their energy company should behave, saying their supplier is rarely in touch. As a result 8% said they are looking to a new supplier which “better understands their needs”.

In spite of the harsh reality of lost savings, households are looking to switch suppliers as one in 10 said they are spurred on for change due to lack of communication from their supplier and because their bills were too difficult to understand.

A similar number felt that poor customer service was a key reason they decided to switch supplier.

Peter Earl, head of energy at Comparethemarket.com, said: “Households that are staying with the same provider for years on end, are likely to have been rolled over onto uncompetitive Standard Variable Tariffs which are often much more expensive than a fixed rate tariff.

“These findings clearly demonstrate how important it is to shop around for your energy provider. Few households can afford a £300 additional annual expense, but our research shows that it is not only price which convinces people to shop around. Factors like poor communication and complexity of bills also play a big part. In order to remain competitive, energy suppliers need to show customers they care, not only when it comes to price but also with improved levels of customer service too.”

HouseholdEnergySwitchCtm

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
2322633-will-writing
60% of people don’t have a will

Over half (60%) of UK adults don’t have a will, according to research from Unbiased.co.uk. 

Close