Take the heat off your energy bills due to the sequential switching

  • Take the heat off your energy bills due to the sequential switching
    Independent.t. E.
    It was often said that when a domestic electricity or gas supplier raises the price, almost all the others can be almost guaranteed to follow suit within a few days or weeks.
    https://www.independent.ie/business/personal-finance/take-the-heat-off-your-energy-bills-through-serial-switching-37185499.html
    https://www.independent.ie/business/article37185498.ece/f5d48/AUTOCROP/h342/2018-08-05_bus_42891937_I1.JPG

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It was often said that when a domestic electricity or gas supplier raises the price, almost all the others can be almost guaranteed to follow suit within a few days or weeks.

The latter began in early June, when SSE Airtricity announced that prices will rise. By mid-July he was followed by electric Ireland, Flogas, Energia, Pinergy, Panda power, Bord gáis prepay and power.

In fact, the only exception is during the writing of the new entrants to be energy and just energy.

So consumers might be surprised if a price fixing cartel will run somewhere across the supply chain of the energy industry.

“The speed with which energy suppliers have increased prices at around the same time, indicate that herd-like mentality, and that is cartel-type behavior is obviously more difficult to prove,” said Daragh Cassidy price-comparison site mind.t. E.

But the Agency for energy regulation, in its recently published annual review of the market, insists that the market is competitive, with 10 suppliers of electricity and eight gas suppliers, compared to five and four respectively in 2013. In addition, it indicates that the share of electric Ireland’s market has fallen below 50pc for the first time.

Wholesale prices

Owen Clarke competing sites to compare prices, switch.t. E. said, “the price we pay for our energy consists of a number of factors, one of the main components of the cost of wholesale energy. Thus, while it is true that we tend to see the most vendors implement price increases or decreases, at the same time, it is clear that this corresponds to the General trend of wholesale prices.”

Cassidy believes that competition keeps the pressure to lower prices on the market, but “because the Wholesale price of energy so much lately increased, it was almost impossible for vendors not to miss some of it on consumers.”

But it also points to the uneven growth of prices, which vary quite significantly from provider to provider.

In power, Pinergy raised prices by nearly 9.38 PC, as well as Energy by 7.6 PC, but Bord GAIS has just increased prices by 5.8 PC. In gas, SSE, energy and Flogas inflated prices for them just over 12 PCs, while Bord gáis Added 4.7 PC to the value of their tariffs.

So if you dual-fuel support, you may end up paying up to €180 per year as a result.

Needless to say, switching is the easiest way to save, especially if you have been with your provider for more than a year.

The initial rate usually lasts for 12 months, after that your supplier will switch back to standard rate and you will end up paying much more for their services.

“So, if you remember that every year to change suppliers, you will ensure that you are always at a reduced rate, so you always get the best value for your money,” said Cassidy.

Customers who moved to the electricity supplier every year for the last four years will be better in the amount of 1,146, according to the Commission on the Controller utilities (CRU). Gas switches would save €670 over the four-year period.

As electricity and gas, which have been active switches is €1,417 better, according to calculations by the energy regulator.

Switching frequency

Crewe insists that the switching frequency in Ireland for electricity (14pc hole saw) and gas (18pc) in 2017 is quite comparable with other EU countries.

This is confirmed in a report last year from the Council of European energy regulators, which shows that Portugal had a high frequency switch in 2016 for electricity and gas at just over 20pcs, while several countries took less than 1pc, Luxembourg, Poland, Romania and Bulgaria. Report classes do for 10pcs high speed switching.

“There is no indication why the switching frequency is higher in some countries when compared to the other,” said Clark. “However, we have seen in Ireland that the new market participants and new proposals for tariffs to shake things up, so this may be a factor.”

One interesting note to the report of Crewe is that he has found a low level of “re-switching”, with the data showing that those who switched to electricity in the past year, 65pc switches electricity switches and 50pcs natural gas, the default standard rate.

So while many of us switch, most of us will not switch every year, like we have to get the maximum savings.

“Our study also shows that the factors of fear as not wanting to get tied into a contract, not being able to tell if a new supplier would save them money, and thinking that the transition seemed too much trouble – all to scare off shift,” said Clark. “In fact, switching is very simple – it only takes a few minutes and can save consumers hundreds of euros.”

It helps that the transition is very simple and quick if you have a recent bill to hand. Using CRU-accredited price comparison services Crazy.t. E. or switch.t. E. you will be asked about how much energy you normally use, which you can calculate using your account.

To make the switch, You need to read the date; it is simple, but the instructions on the Internet if You don’t know how to do it.

If you switch to a new provider, they usually will have taken a 12-month contract and will charge you if You violate it. This fee is usually €50 but can be more.

A fixed rate?

But if you’re worried about even higher prices in the next year, you might now consider the fixed rate available with a new participant of the market, just Energy.

“After all the price hikes this summer will take effect, set energy tariffs the tariff will be one of the cheapest on the market, so it is likely we will see more and more people are opting for these,” said Clark.

“With wholesale prices is only one way, opting for a fixed rate might be a good option for consumers who want a bit of tranquility as we are in winter”.

The downside, of course, is that if prices ever fall, you would not get any savings, but this seems unlikely, based on current trends. You can also register with one big Switch, a consumer network that the campaign to unlock group discounted electricity and gas. It currently offers a dual fuel discount 28pc and electricity-only discount 28pc for new and existing customers of Bord gáis energy.

So, if all these discounts, offers and incentives evidence of some competition in the market, the blame for high electricity prices in particular – the fourth place in the EU, may have to be made, and our heavy dependence on imported fossil fuels in the EU for electricity production.

“We must continue to invest in renewable and local energy sources so we are less at the mercy of wholesale international energy markets in the future,” Cassidy said.

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