Choosing an energy supplier is relatively simple
Competitive energy markets give you many advantages as a consumer, offering you the opportunity to switch from a traditional energy supplier to another that best suits your individual needs. But when it comes time to pick an energy supplier, you may feel overwhelmed by the choices. The main advantage to switching energy suppliers is that you will enjoy price comparison. This can be a very good thing, but you need to understand how it works to benefit from price comparison.
Price comparison between energy suppliers is based on the NOPEC rate of return. This is the average cost per kilowatt hour divided by the number of kilowatts used. For example, if you use five hundred kilowatts of electricity a month and pay about two hundred pounds a year, your energy supplier should send you a letter telling you how much you could expect to pay if you stayed with their supplier. This letter is called a tariff and is usually displayed on your bill.
retail price for the energy itself allowing you to save money
However, a great deal of energy suppliers operate on different rates of return, and this information is not always displayed clearly on your bill. If you are comparing prices online, you will be able to find out which supplier provides the lowest price for your energy supply and compare it to the NOPEC rate of return. In many cases, the price you pay to your energy supply company is less than the retail price for the energy itself, allowing you to save money.
How do you find out what the average cost of energy supplied by energy suppliers is? You can ask an energy regulator, such as Ofgem, to provide you with their annual fuel bills. These are published in the year before the current billing cycle begins, and they show the cost per MWh throughout the year. A more detailed and up to date comparison can be found on the Energy Performance Certificate website.
energy suppliers do not always offer the best deals around
Once you know the price of your energy supply, you can start to check how your energy suppliers are performing. As well as looking at the price per MWh, it pays to look at how energy suppliers have performed in other areas. For example, how have they done when negotiating prices with your utility company? In recent years there have been increasing concerns over energy price hikes. By looking into how energy suppliers have performed in other countries, such as the UK, you can see how they negotiate with both suppliers and the energy regulator. This can give you an insight into how they perform when dealing with customers.
It is important to remember that energy suppliers do not always offer the best deals around. Sometimes they will increase prices without warning, especially if they are trying to increase their share of the market. It is important to check that the price you have been charged is accurate, and to compare between different energy providers before making your final decision on who to go with. This will ensure you get a fair deal.