How to pay the REAL price of your gas and electricity usage

You could be paying hundreds less for your energy if you shop around.

The average household should be paying £850 a year for their energy bills, according to industry experts.

Yet energy companies aren't passing on wholesale price cuts and many people still aren't switching regularly, meaning they're paying their provider's standard tariff, which is usually far more expensive. As it stands the average annual standard tariff costs £1,100 a year while the cheapest fixed rate dual fuel tariff available is now actually £764.10. A massive difference.

Last week SSE became the second of the so-called 'Big Six' companies to launch a cheap tariff.

But the gap between that tariff and SSE's standard tariff is hundreds of pounds.

Compare energy tariffs with loveMONEY

How to make the switch

A couple of weeks ago we asked if any of you were planning to switch any of your financial products this year and a healthy 30% of you said you would switch energy supplier.

These figures show once again how important it really is to shop around and not stick with the same energy company year after year.

How to switch energy supplier

The switching process isn't a daunting one.

It’s best to look around a few weeks before your fixed rate tariff is due to come to an end. Those on standard rate tariffs needn’t worry as in most cases they’ll be able to leave penalty-free.

The next stage is looking at your next energy tariff. Make sure you have a note of your postcode, annual gas and electricity usage, your current supplier and the tariff that you’re on at the moment. These bits and pieces will make it much easier to get an accurate quote. There are a few bits of jargon and extra information you need to know when changing suppliers. Read more at How to switch energy supplier.

Then use a whole of market comparison service such as loveMONEY's energy comparison to see who offers the cheapest energy in your area.

Cheapest tariffs right now

To give you even more of an idea of the savings you could make, here are the cheapest dual fuel energy tariffs available right now.

Energy supplier	Tariff	Type of tariff	Average annual cost
Go Effortless	Domestic Energy January 2016 v1	Fixed for 12 months	£764.10
SSE	One-Year Fixed v4	Fixed for 12 months	£774.71
E.ON	Energy Fixed One Year v19	Fixed for 12 months	£779.32
GB Energy Supply	Premium Energy Saver	Variable	£787.00
Places for People Energy	Together-February 2017- fixed 30	Fixed (until 28 February 2017)	£794.00
Extra Energy	Fresh Fixed Price February 2017 v2	Fixed (until February 2017)	£794.00
Avro Energy	Simple and Save	Variable	£795
Extra Energy	Clear Fixed Price February 2017 v1	Fixed (until February 2017)	£801.00
First Utility	First Fixed March 2017 v4	Fixed (until March 2017)	£805.80
First Utility	First Fixed March 2019 v2+	Fixed (until March 2019)	£814.00
npower	Fixed Energy Online January 2017 (07/01)	Fixed (until January 2017)	£821.00

Prices based on average consumption as measured by Ofgem of 12,500kWh of gas and 3,100kWh of electricity and a customer paying by monthly direct debit including VAT.

Since new tariffs and plans are being introduced by energy companies all the time, you should review your energy tariff every six months, or once a year at the very least.

Find out what other financial products you should switch by reading 8 financial products smart people switch EVERY year.

Compare energy suppliers and see if you could save right now!

Get the lowdown with loveMONEY:

Don't be duped by this DANGEROUS NEW email scam

Cheers? Aldi launches wine delivery service, but is it any good?

Location of £33 million lottery jackpot-winning ticket revealed

Do you need to file a tax return this year?