If you’re moving into a shared student house for the first time, one of the first things you and your housemates will want to sort out is your utility bills.
It’s all too easy to just carry on with whatever energy supplier is already in place, what with everything else going on when you’re moving in and starting term, but once you’ve settled into your new pad, it’s well worth taking the time to check if you’re currently on the cheapest available deal – and also the most appropriate for how you and your housemates are using gas and electricity.
Shop around to save
While most people will shop around when they’re looking for insurance or a new phone deal, a surprising number of people don’t shop around when it comes to energy bills.
Last year, research commissioned by Ofgem, which regulates the electricity and gas markets in Britain, revealed that 21 million Brits were missing a trick when it came to shopping around for better energy bills. While 33% of those surveyed were concerned about their energy costs, 43% said they didn’t prioritise shopping around for a better deal.
Can I switch if I’m renting?
As a tenant, you can switch your energy tariff as long as you pay your bills direct to the supplier. You might still be able to switch if you pay your landlord for your energy, but you would normally have to seek his or her agreement to do this. Find out more about your energy rights as a tenant.
Step 1: Check out your bills
Before you begin energy shopping, you need to know exactly how much you’re paying.
Dig out copies of your last few bills and your annual summary. The annual summary shows how much you’d be paying over the next 12 months if you stay on your current tariff (based on current prices), which makes it easy to compare it with other deals. If you’re not sure about anything, the Go Energy Shopping site explains the information featured on your energy bills and annual summary.
If you can’t find your bill or annual summary – or would prefer to speak to someone about your bills – you can call your energy supplier. (You can download a Comparison Notepad from the Go Energy Shopping site, which contains all the information you’ll need to ask them for.)
Step 2: Compare energy tariffs
You’ll find Tariff Comparison Rates (TCRs) on energy suppliers’ websites and on price comparison sites. Suppliers use TCRs as a way to advertise their gas and electricity tariffs (and how competitive they are) – in much the same way mortgage and credit card providers do with APRs.
The main thing to bear in mind about TCRs is that they are a quick way to compare each supplier’s tariff. There will be a TCR for each type of energy tariff – shown in pence per kWh (p/kWh), based on medium usage.
While TCRs can provide a useful starting point, it’s important to find out what’s right for your student house or flat based on more personalised information. For that, you’ll need to have your personal projection or personal consumption info to hand. Visit the Go Energy Shopping site for detailed information and advice about comparing different energy tariffs.
Comparison sites are a great way to get started when you begin shopping around for energy. All the Ofgem-approved sites are independent, and the options and prices you’ll find on them will be calculated and displayed in a fair and unbiased way.
Step 3: Making the switch
If you decide you want to make a switch, your new supplier will set up your new account and inform your old supplier and agree a switch-over date, which they’ll let you know about. (If you’ve switched gas and electricity, the dates may be different for each.)
You’ll be asked to provide an accurate reading from your energy meter on your switch day. It’s also a good idea to keep your existing energy supplier up-to-date with accurate readings, so you can be sure they’re charging you for the correct amount of energy and not just estimating your bill. You will receive a final bill from your old supplier, and will also need to cancel any Direct Debits you have in place for them.
If one person in your student house is paying for the energy bills by Direct Debit, it’s a good idea to use a bill-sharing app such as Splittable to help keep track of what everyone owes the bill-payer and avoid them being left out of pocket at the end of the tenancy.
When you switch supplier, your gas or electricity will still come through the same pipes and cables as before, and you’ll keep the same meters – all that changes is the name of the company on your bill. There will be no interruption to your supply! The switching process used to take up to six weeks, but now takes just 17 days, which includes a two-week cooling-off period.
Remember that this shouldn’t just be a one-off check when you move in – energy suppliers are constantly reviewing their prices and introducing new offers, so it’s worth checking again once or twice a year to make sure you’re still on the best available plan. If you’ve signed a fixed-term plan with a fixed tariff rate until a given date, make a note of the end date so you can switch when the plan comes to an end if necessary.
Check out the Go Energy Shopping site for all the information you need to shop around for a better energy deal.