- Switching from QCC to MDD could save Brits £3.5 billion a year
- British households could save £316 - £3.3 billion overall - by swapping away from their incumbent provider
Review your payment method
Research from the UK's leading price comparison site reveals bill payers languishing on their supplier's standard tariff and paying quarterly by cash or cheque (QCC), could save themselves a total of £3.5 billion per year or £253 per household on average by switching to the best online deal on offer, and paying by monthly direct debit (MDD)1.
Mind the gap!
The research also exposes the widening gap between the cost of paying for your energy usage. Last year the difference between the best and standard deal was £178 on average and this has increased by £75 or 42 per cent to £2532.
Scott Byrom, utilities manager at moneysupermarket.com said: "While the cost of online energy deals has fallen this year after a raft of price cuts, a freeze on the cost of standard energy tariffs means those bill payers languishing on these tariffs are being penalised even further. It is worrying to see the gap between payment methods widen so rapidly, but provides a clear call to action for bill payers - apathy won't be rewarded here so taking action and swapping to the best deal possible is crucial."
Loyalty doesn't pay
moneysupermarket.com also found British households languishing with the traditional gas and electricity provider for their region - the incumbent provider - are missing out on £3.3 billion in savings3 - this has increased from a potential £2.5 billion saving six months ago. On average a British household could save £316 by swapping to the 'best' online deal for their region - those in East Midlands can save the most, an impressive £349 a year.
Scott Byrom continued: "Looking at the savings to be made by swapping away from your incumbent provider, and ensuring you pay by MDD, should be the first port of call for people looking to save money on your energy bills. This option allows bill payers to spread the cost of their gas and electricity bills equally each month - rather than having to fork out for the large bill that lands on their doorstep each quarter. An online account allows customers to enter 'actual' meter readings quickly and easily - ensuring they pay for exactly what is used, not an estimation.
"Changing to an online tariff gives consumers the opportunity to keep track of their payments and have a clearer idea of their balance by managing their account online. Online tariffs based on MDD payments are discounted because less administration is needed - so bill payers can cut out what can be poor customer service from call centres, saving cost, time and paperwork, in one fell swoop."
-Ends-
Notes to editors:
1 According to latest stats from Ofgem, 13.8million people pay their gas and electricity bills by QCC: http://www.ofgem.gov.uk/MARKETS/RETMKTS/ENSUPPRO/Documents1/Energy%20Supply%20Probe%20-%20Initial%20Findings%20Report.pdf
Bill payers can save on average £253.33 per year by switching to paying by MDD. Therefore, 13,800,000 x 253.33 = £3,495,954,000 or £3.5 billion
2QCC vs MDD
As of 13.11.2009
Current best average - £973.40
Current QCC average - £1232.75
Difference of £253.33
As of 20.11.2008
Best average - £1116.90
QCC average - £1294.54
Difference of £177.64
Sourced by moneysupermarket.com 13.11.09
3Ofgem Energy Supply Probe - Initial Findings Report (page 35):
http://www.ofgem.gov.uk/Markets/RetMkts/ensuppro/Documents1/Energy%20Supply%20Probe%20-%20Initial%20Findings%20Report.pdf
10,408,232 remain with the incumbent supplier for their region for gas and electricity. According to moneysupermarket.com the average saving a UK household can make by swapping from the incumbent provider to the best available deal is £316. 884
£316.84 x 10,408,232 households = £ 3,297,729,357.98 - or £3.3 billion.
Incumbent versus 'best' tariff for the UK's 14 regions:
|
Region |
Incumbent Tariff |
Best Tariff |
Incumbent v Best |
|
|
Potential Saving |
|
|
Total (£) |
Tariff |
Bill (£) |
£ |
|
|
London |
£1,251.44 |
E.ON
Fix Online v3 |
£957.41 |
£294.03 |
|
|
|
South East |
£1,245.75 |
E.ON
Fix Online v3 |
£944.66 |
£301.09 |
|
|
|
South West |
£1,270.35 |
Scottish Power
Online Energy Saver 7 |
£943.08 |
£327.27 |
|
|
|
Southern |
£1,271.66 |
Scottish Power
Online Energy Saver 7 |
£931.75 |
£339.91 |
|
|
|
Eastern |
£1,256.27 |
Scottish Power
Online Energy Saver 7 |
£919.08 |
£337.19 |
|
|
|
East Midlands |
£1,247.93 |
Scottish Power
Online Energy Saver 7 |
£898.87 |
£349.06 |
|
|
|
Midlands |
£1,279.81 |
Scottish Power
Online Energy Saver 7 |
£936.71 |
£343.10 |
|
|
|
Yorkshire |
£1,262.70 |
E.ON
Fix Online v3 |
£938.73 |
£323.97 |
|
|
|
Northern |
£1,262.79 |
E.ON
Fix Online v3 |
£941.69 |
£321.10 |
|
|
|
North West |
£1,239.17 |
Scottish Power
Online Energy Saver 7 |
£948.50 |
£290.67 |
|
|
|
North Wales & Liverpool |
£1,223.60 |
Scottish Power
Online Energy Saver 7 |
£931.59 |
£292.01 |
|
|
|
South Wales |
£1,264.38 |
E.ON
Fix Online v3 |
£999.55 |
£264.83 |
|
|
|
North Scotland |
£1,239.36 |
EDF
Online Saver 4 |
£935.28 |
£304.08 |
|
|
|
South Scotland |
£1,275.38 |
Scottish Power
Online Energy Saver 7 |
£927.95 |
£347.43 |
|
|
|
Average |
£1,256.47 |
|
£939.63 |
£316.84 |
|
|
Based on medium usage consumption (Gas 20,500kwh, Electric 3,300kwh).
Sourced by moneysupermarket.com 23.11.2009
Download This Press Release
Download as RTF
Related Links
