Households could make savings of up to £715 if they take advantage of a little-known energy bill hack, according to new research from TotallyMoney.
According to Ofgem data, approximately 22 million homes across the UK remain on standard Variable Rate tariffs, which means they’re being charged the highest amount energy suppliers are permitted to levy.
These households could reduce their annual energy costs by an average of £271 simply by changing providers.
Notably, the most significant savers could see their bills drop by as much as £715 yearly, with one in ten households able to achieve these substantial reductions.
The findings emerge as energy costs remain a pressing concern for British families heading into the colder months.
Despite a seven per cent reduction in July that brought typical household energy bills down to £1,720 annually, costs remain significantly elevated compared to pre-crisis levels.
Current bills are nearly £500 higher than they were in April 2021, representing a substantial burden on household budgets.
The situation is set to worsen, with projections indicating bills will climb by an additional £100 when April arrives.
Analysts note the anticipated increase makes immediate action crucial for households seeking to minimise their energy expenditure before winter demand peaks.
Several misconceptions prevent consumers from seeking better energy deals, according to energy experts from Totally Money. This includes the belief that switching suppliers involves complex procedures and lengthy delays is unfounded.
“Most switches take place within seven working days, and your new supplier handles all the paperwork,” explains Alastair Douglas, chief executive of TotallyMoney.
“All you’ll need to do is give a final meter reading and you’re done.”
Concerns about losing power during the transition are equally misplaced.
“This is physically impossible because your gas and electricity flows through the same pipes and cables regardless of who is charging you,” Mr Douglas stated.
For example, no engineers need to visit a customers homes for standard supplier changes.
Many consumers mistakenly believe they’re trapped in their current contracts, but Mr Douglas clarifies that households on Standard Variable Rates have likely completed their initial agreements.
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“The chances are even higher if you’ve not moved suppliers in the past 12 months,” he noted/
While some assume all energy deals offer similar value, suppliers now provide tariffs below the price cap, creating opportunities for real savings.
However, Mr Douglas warned these often include year-long commitments and potential exit fees of up to £50 per fuel type.
It should be noted that switching suppliers will not affect credit scores, though new direct debit arrangements might trigger soft credit checks.