Renters missing out on £190 year by not switching energy suppliers

The energy regulator Ofgem has urged people living in rented accommodation to start switching energy suppliers.

Four out of five people renting in the UK have never switched their energy supplier, according to a report from the energy regulator.

But switching providers could save each tenant an average of £190 per household.

Tenants’ rights

If a tenant is paying the electricity bill then they are directly responsible for switching companies. But just 23% of people living in rented accommodation have ever gone through the switching process.

Landlords and letting agents will sometimes include a default supplier in a tenancy agreement, which can put people off switching.

If you’re living in rented accommodation and want to switch suppliers it’s best to tell your landlord or letting agent first. When you do move in take note of the meter readings so you’re not charged for gas and electricity you haven’t used.

Energy tariffs for renters

[SPOTLIGHT]Energy prices have been rising steadily during the past year, with a new wave of price hikes by the big six providers expected imminently.

To combat rising prices, many energy customers have chosen to fix their bills. No wonder as several attractive deals have been launched recently.

The average tenancy agreement lasts 12 month, so most renters will be looking for energy tariffs of the same length.

The cheapest tariff around over a one-year term comes from M&S Energy and costs £1,139 for a year. This is followed by the Online Price Fix October 2014 tariff from Npower, which is an average of £1,181 a year.

Our comparison tool gives a full view of the market but below I’ve listed the top five in this area.

*based on typical gas and electricity bill for someone who has never switched costing £1,420 (Source: OFGEM 2013). Source: energyhelpline.com, 13/9/13

Renters may also prefer a variable tariff which has a little extra flexibility if you’re not locked into a fixed tenancy.

These tend to be cheaper than fixed-rate tariffs but they are also subject to change as and when energy hikes come into force.

First Utility offers the cheapest variable tariff, the iSave V16 at an average price of £1,155. The table below outlines the cheapest five in this area.

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