Switching energy providers used to be a good tip for keeping household costs down, as different providers offered different rates depending on your households usage but that has now changed.
Spiralling cost of living costs and energy price hikes has meant many usually switching providers have either gone bust or can't offer consumers a decent deal due to soaring wholesale costs of fuel. The average household energy bill is expected to rise to more than £3,000 this autumn, a price which many can't afford to pay.
So is now the right time to be switching energy suppliers and can it be done? Martin Lewis, the man behind Money Saving Expert, has previously warned householders not to switch suppliers because their bills with their new provider may be even higher than their original supplier because of rising energy costs for everyone.
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With 'cheap' energy suppliers in short supply in the current market and many smaller suppliers dropping out in the past year, it's thought switching energy suppliers now may not have the same results as it would of this time last year.
Price comparison website Uswitch helps users compare the market to get the best energy deal, but despite its proven history of getting households the cheapest offer it looks like now is not the best time to try and make that move.
Richard Neudegg, the Head of Regulation at Uswitch, said: "The easiest way to save money on energy historically has been to switch energy regularly to ensure you're on a good deal. With wholesale energy prices still high, though, most customers may find that staying put at the moment is the best course of action."
Despite the tricky market, Justina Miltienyte, head of policy at Uswitch said customers shouldn't let the situation make them feel pressured to take out an expensive fixed tariff.
She said: "As it stands, there are no fixed deals cheaper than the current price cap predictions. Some households may prefer to pay over the odds to have the stability of a fixed deal that will cover next winter when energy use will be higher, but it’s crucial that bill payers don’t feel pressured into taking out an expensive fixed tariff if they will struggle to manage the cost.
“Keep a close eye on the market and run regular comparisons to see what deals are on offer. By signing up to alerts, you can stay close to what’s happening in the energy market and be informed when a good deal comes along."
If you're on a fixed deal, it's advisable to stay on it until it ends, as it's probably a lower price than most deals on the market at the moment. If you're on a standard variable tariff, these are capped at £1,971 on average per year until October 2022.
Uswitch compare a range of suppliers including British Gas, E.ON, Shell Energy and Scottish Power. Households can get guidance on whether it's the right time for them to switch on various sites including USwitch, MoneySupermarket and Confused.com.
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