One Fool explains how switching your gas and electricity supplier now could result in your bills going down twice in just a few months.
In January three leading gas suppliers reduced their prices although two of them have reduced prices for new customers only -- that means you should consider switching your supplier so that you can get one of the best deals.
Let's start with the suppliers who have only reduced prices for new customers:
npower
On 31 January, npower reduced the cost of its Sign Online tariff. To check its competitiveness, I compared utility prices by entering arbitrary details in our utilities comparison centre (£500 a year on gas and £300 on electricity; north-west London; switching from British Gas's standard tariff). npower's Sign Online tariff came top, with estimated savings of just over £200. Of course, the top tariff will vary depending on where you live and your usage, but this quick test indicates the reductions were significant.
EDF Energy
From 5 January, EDF Energy reintroduced its Online Energy tariff, albeit in just the Southern region. Another quick search, this time in the Southern region (£500 gas and £300 electricity; Guildford; switching from British Gas's standard tariff) brings up EDF in a respectable third place, behind npower and EBICo, which means it might easily come top if you enter other details. Savings with EDF in this instance are estimated to be £150 (and with npower it's £195).
Both of the above reductions are for new customers only. However, further reductions in utility prices are expected in the next few months. Providing they aren't embarrassingly small, they will probably be announced in the papers as affecting both new and existing customers. This means that anyone switching to npower or EDF today might save now, and then save some more in a few months!
Scottish and Southern Energy
From 16 January, Scottish and Southern Energy (SSE) increased its 'prompt payment discount'. This deal is available to both existing and new customers. However the increase in the discount was a mere 0.8%, up from 3.5% to 4.3%. It affects customers of the Scottish Hydro, Southern and Swalec brands.
Existing customers, as always, must wait longer for the best reductions. Once again, loyalty is not paying. I wish this wasn't the case, because I've had to write that phrase so many times recently that it's become a cliché!
> Compare gas and electricity prices at our Utilities Centre.
> Read Why Savings Vary In Energy Comparison
> Save Money With British Gas's Hidden Tariff