Research carried out at moneysupermarket.com has revealed that an average household paying their provider's standard tariff will pay on average £104 more this year than last.
The most expensive way to pay your energy bill is via quarterly cash or cheque, yet figures show that over half of us still pay using this option, meaning that most of us will be receiving quite a hefty bill in the coming weeks.
Although there is nothing you can do about your up and coming bill, now is the time to review your energy spend to make sure that future bills will be easier to swallow. The launch of a new cheaper tariff from British Gas is therefore welcome news.
What’s the deal?
WebSaver 6 from British Gas is currently the UK’s cheapest energy tariff on average, with a typical household paying just £899 per year.
The cheapest deals available at the moment require you to pay via monthly direct debit and this is no exception. The tariff is also operated online meaning that you will have to carry out your own meter readings and submit them via the web. By doing this you will receive a generous discount of up to £88 a year.
Existing British Gas customers can transfer onto this deal, but do check the terms and conditions of your existing tariff - there may be a termination fee or minimum contract period to fulfill depending on the tariff you're on.
This is not a fixed price tariff, meaning that British Gas could raise the price on this deal at anytime. However, it does guarantee that you will pay at least 6% less than its standard charges until May 1 2011.
Websaver 6 is a dual fuel tariff so you must receive both your gas and electricity from British Gas and pay by monthly direct debit. By signing up for this deal you agree to manage your bills online (which means submitting your own meter readings).
If you don’t sign up to online account management and paperless billing within the first eight weeks, British Gas reserves the right to transfer you on to its standard gas and electricity prices which are significantly higher.
You will also be penalised if you look to move away from British Gas before August this year. There is a £30 termination fee per fuel if you leave before then. Carefully check the terms and conditions of your tariff if you're an existing customer.
Considering the average standard tariff currently costs £1,232 per year, moving to WebSaver 6 will potentially save you £333, making this the best deal to move onto.
However, it’s worth noting that, while this is the cheapest energy tariff on average, you may find an alternative product actually proves to be better value for you. This will depend on where in the country you live and your consumption. So before you sign up, check that you can’t get a better deal elsewhere.
This is easy to do: just use our energy comparison tool to input your postcode; details of your current energy provider and your consumption or the amount you pay, and it will bring up the cheapest option and show you how much you could save.
It’s a simple one: get into the habit of switching your energy tariff every year. If you haven’t changed your energy deal in the last 12 months, you are almost certainly paying more than you need.
The switching process is very straightforward: you can identify the best deal using moneysupermarket.com’s comparison tool and click through to apply for it. Your new supplier will then arrange the transfer over from your existing provider.