Could switching energy supplier pay for a holiday? Big Six customers could save as much as return flight to San Francisco by moving to a fixed deal
- Eon customers could buy flights to San Francisco with energy savings
- Millions could purchase holidays with savings from switching to fixed deals
- We reveal difference between default tariff costs and fixed deals
Millions of households across the UK are missing out hundreds of pounds they could spend on flights around the world by not switching tariffs with their energy supplier, new research has revealed.
With the temperatures across the UK plummeting this week, homes up and down the country will be forced to crank up the thermostat to keep the cold at bay.
But as many fail to switch from their fixed rate deal, the cost of keeping our homes warm this winter is set to go through the roof.
Currently, 1.9 million Eon customers could be missing out on £283 by staying on the provider’s SVT – standard variable tariff – the equivalent of a return flight to San Francisco.
Eon customers could buy return flights to San Francisco with the amount they could save
Auto-switching service Look After My Bills crunched the numbers and found households with Eon on its SVT are spending £1,117.28 a year on their energy.
This is just under the price cap limit but by switching to Eon’s Fix Online Exclusive v22 deal, they’d pay just £893.32 a year.
A further 2.7 million British Gas customers are potentially overpaying by £280 a year by sticking to their default tariff.
Look After My Bills checked flights on Skyscanner, correct as of 17 January 2020, for return journeys from 20 February to 25 February 2020.
They found that households on the British Gas default tariff could use the money saved by switching to the supplier’s Energy Plus Protection Jan 2021v3 fixed tariff to buy a return flight to Abu Dhabi.
Meanwhile, those with EDF could be missing out on a trip to New York as the difference between the price of an SVT and a fixed tariff is currently £274.
Similarly, Scottish Power customers could save £149 by switching to the firm’s Super Saver January 2021 B1 fixed deal, equivalent to the price of a return flight to Istanbul.
Meanwhile, Npower customers could cut their bills by £86 by moving to the supplier’s Exclusive Fix February 2021 v2 tariff – the equivalent saving of a return flight to Alicante.
Customers with SSE could save the least by switching at £39 – but this is still the same price as jetting off to Budapest.
|Company||Tariff||Calculated Annual Cost||Standard Variable Tariff||Difference||Destination||Flight price|
|E.ON||Fix Online Exclusive v22 – Paperless||£893.32||£1,177.28||£283.96||San Francisco||£279|
|British Gas||Energy Plus Protection Jan 2021v3 – Paperless||£896.72||£1,177||£280.28||Abu Dhabi||£278|
|EDF||Simply Online 1 Year Fix Jan21v3 – Paperless||£903.02||£1,177.28||£274.26||New York||£274|
|Scottish Power||Super Saver January 2021 B1 – Paperless||£1,028.99||£1,178.49||£149.5||Istanbul||£145|
|npower||Exclusive Fix February 2021 v2 – Paper and Paperless||£1,092,36||£1,178.50||£86.14||Alicante||£85|
|SSE||SSE 1 Year Fix & Protect – Paper and Paperless||£1,137.87||£1,177.74||£39.87||Budapest||£38|
|Source: Look After My Bills|
Henry de Zoete, co-founder of Look After My Bills, said: ‘As Britain faces increasingly cold weather, it’s shocking to see just how much money people can be overpaying just to heat their homes.
‘The fact customers on a standard variable tariff can be overpaying by the same amount as a return price to San Francisco is terrible.
‘Despite the energy cap coming into place last year, standard variable tariffs are still acting as a customer loyalty tax, penalising customers who forget to switch when their fixed rate deal ends.’
Customers are encouraged to use price comparison websites or auto-switching services to save money on their energy bills – especially those on SVTs.
However, the price cap, which was introduced at the beginning of last year as a way of protecting customers on default tariffs from paying over the odds, is also expected to be reduced by £60 in April.
While the energy watchdog Ofgem has yet to confirm the new cap, price comparison site Energy Helpline released its forecast this week, suggesting the new typical dual fuel energy bill will be reduced to £1,119 a year or less.
This would be a 5 per cent reduction on the last cap, which was 6 per cent down on the previous one.
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