In the UK, the energy market is still as intense and competitive as it has always been as no gas supplier has yet gained a monopoly in UK market. When the European Union vegan deregulating gas suppliers in the UK in 1996, the energy market blew open with the arrival of some international energy suppliers.
In a bid to gain your custom, every energy supplier now has to offer really cheap prices for energy, alongside bargain deals if you switch, or receive duel fuel etc. These packages are absolutely necessary for the suppliers as in the current climate, everyone is thinking about their expenses, and more and more people are becoming inclined to switch.
Since the market has become so competitive due to the introduction of international, as well as national, rivals, many people have been turning to comparison websites to do the work for them. Comparing all the packages on offer manually, would require an awful lot of man hours, effort and concentration, whereas in the click of a button, a comparison site will do all that for you. They guide the customer by providing accurate analysis of all the calculations of the various packages.
Many people have decided to switch supplier since the introduction of these price comparison websites in an attempt to save a lot of money. Switching can benefit some customers but it does not guarantee a saving, and when a loss occurs it can be quite significant. When you decide to switch has the most impact on the results of your profit, as the most beneficial time to switch energy supplier is when the market is at a standstill and unlikely to have a major fluctuations. It has been suggested that switching supplier during the winter is more effective than switching during the summer as the average customers energy consumption is much higher during the winter. Therefore, if a switch is made in the winter, the consumer will be receiving the lowest possible price for maximum consumption.
A couple of the most important factors when switching supplier are the type of fuel you require and the method of payment. Most energy companies, especially the main competitors in the market, offer a dual fuel package which is often cheaper than purchasing gas and electricity individually. Consumers should conduct thorough research into the individual prices of any energy supplier before going forward and entering into a duel fuel contract. Another huge impact on energy prices is the method of payment, as the modes preferred by the suppliers often has a heavy discount as it avoids any paperwork or costs incurred to them. The two main competitors in payment are direct debit and internet tariffs, these are often promoted and encouraged by offering additional discounts. A fixed monthly direct debit is one option which can have consequences as over-billing and under-billing are often a problem. These miscalculations are adjusted on the consumers account at the end of the financial year, but this can put financial pressure on the customer to foot a large bill if the supplier has misjudged their energy usage.