Cheap Energy Deals: Compare Free To Save £100’s

Cheap energy deals

What’s in this guide?

Introduction

With the recent news of the primary energy suppliers hiking their prices another time this year, it leaves a lot of customers asking this essential question: Am I getting the best cheap deal for my energy?

According to Ofgem, who is the energy industry regulator, up to 65% of energy customers never switch suppliers.

On top of that, they say 57% of customers are still on expensive standard tariffs, which can often mean spending £100s more than you need to on your electricity and gas.

Because of these shocking statistics, Ofgem has announced that they are putting a price cap on how much energy companies can charge their customers until 2020, which should be in place by the end of 2018.

Why should you switch?

✔Find a cheap energy deal to save you money
✔Save a further amount by doing things like paying by direct debit
✔Find a supplier with excellent customer service
✔Switching online is stress-free and quick
✔Many suppliers offer energy efficiency advice to help you reduce your costs
✔There are now many green energy companies, for those who care about the environment

How much have prices risen in 2018?

The vast majority of energy suppliers regardless of the size have had to increase their energy prices this year.

However, the amount that it has changed does vary in the extremes depending on the energy supplier, as some do still offer cheap deals on their energy.

British Gas who offers one of the most expensive tariffs on the market only increased their prices by 3.00%, whereas a smaller independent energy supplier like Bulb has increased theirs by 5%.

However, that still makes the Bulb tariff considerably cheaper than British Gas, with a difference of over £200 a year.

Supplier Old price New price Difference (£) The difference (%) Effective from
Our Power £848 £939 £91 10.70% April 2018
iSupply £1,014 £1,090 £76 7.50% March 2018
Good Energy £1,167 £1,249 £82 7.00% December 2017
Engie £980 £1,038 £58 5.90% April 2018
Pure Planet £860 £908 £48 5.60% March 2018
Ofgem Prepay Cap £1,031 £1,089 £57 5.60% April 2018
Ebico £1,101 £1,161 £60 5.50% January 2018
British Gas £1,101 £1,161 £60 5.50% May 2018
Ecotricity £1,201 £1,258 £58 4.80% April 2018
Igloo Energy £845 £871 £26 3.10% April 2018
Bulb £855 £878 £24 2.80% April 2018
Eon £1,123 £1,153 £30 2.70% April 2018
EDF £1,142 £1,158 £16 2.70% June 2018
Octopus £908 £931 £23 2.50% February 2018
Npower £1,116 £1,230 £64 5.30% June 2018
Scottish Power £1,210 £1,273 £63 5.50% June 2018
SSE £1,013 £1,089 £76 6.70% July 2018
Bulb £879 £923 £44 5.10% August 2018
First Utility £1,1991 £1,132 £66.96 5.90% July 2018
EDF £1,158 £1,228 £70 6.00% August 2018
British Gas £1,161 £1,205 £44 3.00% October 2018

How can I save even more on my energy?

Pay by Monthly Direct Debit

If you choose to pay by direct debit, you could save up to £90 a year! Why? This shows your supplier that you can pay for your energy, plus they earn interest, so it benefits them too.

If your supplier offers this payment method, you should opt in if you can afford it.

Dual Fuel

Sometimes dual fuel tariffs can be cheaper than single rate tariffs, but you should always compare suppliers before making any decisions about whether you are going to switch, and definitely about all the tariffs that you can get.

Dual fuel: When you get both your electricity and your gas from one supplier.

Single rate tariffs: This is when you only get electricity or gas from a supplier, rather than both.

Online Account Management & Paperless Billing

Some suppliers allow you to manage your account online, which usually means that you won’t receive communications via the post or anything like your bill.

Many suppliers will give you a discount as they won’t be paying for printing or postage, plus it helps them to stay energy efficient and greener.

Insulation and Boilers

If you want a way to cut down your bills considerably, maybe you should consider either investing in insulation for your home or a new boiler.

Although this can be an expensive one-off payment, in the long run, you are going to benefit from having an efficient boiler and better insulation.

Some companies offer schemes as part of an energy efficiency obligation which means that you could have a sum put towards your new boiler or insulation, or you could have one for free.

Boiler Repair

Every year, 60% of your energy is spent on heating.

A new boiler could save you around £320 a year – yup, that’s right.

New boilers can sometimes cost you around £2,300 – which is a great freebie if you can get one.

Cavity wall insulation

Many homes that were built after 1920 have wall cavities, and filling them could save you £150 a year.

Loft insulation

A lot of your home’s heat escapes from the roof, but solving this can save you £130 a year.

Eco Scheme

The Energy Company Obligation (ECO) is a government scheme that was created to try and tackle fuel poverty and energy inefficiency in the UK.

It means that larger energy suppliers should help you become more energy efficient by installing things such as loft or wall insulation for example.

You are eligible under this aspect of ECO if you receive at least one of the following benefits and satisfy income requirements if that’s necessary:

  • Income-related employment and support allowance (ESA)
  • Income-based jobseeker’s allowance (JSA)
  • Income support
  • Pension Credit Guarantee Credit
  • Tax Credits
  • Universal Credit

Find out more here.

Who offers the cheapest energy deal?

Taking the table in the energy prices section into consideration, Igloo Energy appears to be the cheapest energy supplier.

Supplier Old price New price Difference(£) Difference(%) Effective from
Igloo Energy £845 £871 £26 3.10% April 2018

How does this translate into the other areas of the business? What do their customers think?

Igloo Energy enjoys an excellent 4-star rating on Trustpilot, with 71% of their reviews falling within the positive 5-star category and only 2% in the negative.

Many customers feel that customer service is just as outstanding as the low price for their tariff.

Let’s face it; if your energy were disrupted for any reason, surely you would want an excellent customer service team that would have your problems fixed in no time at all?

This is where some of the ‘big six’ energy companies fall short, according to reports from trusted websites such as Trustpilot, like British Gas that only have a 1-star rating, which gives them a ‘bad rating’ according to the Trustpilot guidelines.

So what are the other cheap energy deals you can switch to today?

According to research, the table below depicts the top 5 cheap energy deals you can benefit from today, ranked by the least expensive to the most costly.

Supplier Old price New price Difference(£) Difference(%) Effective from
Igloo Energy £845 £871 £26 3.10% April 2018
Bulb £855 £878 £24 2.80% April 2018
Pure Planet £860 £908 £48 5.60% March 2018
Bulb £879 £923 £44 5.10% August 2018
Octopus £908 £931 £23 2.50% February 2018

This table shows you how these companies rate regarding customer reviews, discounts, exit fees and how simple they are to use.

Although some customers understandably prefer paper billing, it could be costing you more money and time than if you manage your account online or with an app.

Supplier Trustpilot Rating Discounts available Cancellation Fees Easy to access information

Digital account 

Bulb ★★★★★ None None
Octopus ★★★★★ None None
Igloo Energy ★★★★ 3% reward on credit balances None
Pure Planet ★★★★ £30 dual fuel discount per year None

Switching FAQ

Is switching complicated?

Years ago, switching may have been complicated and stressful.

However, now laws are protecting you as the customer from this stress, meaning that your new supplier will take care of everything on your behalf.

How long does it take to switch?

Energy suppliers have a 14 day cooling off period where you can cancel your switch without a fee, so energy companies do not do anything during that period.

After that, however, it can take around four to six weeks to complete the switching process.

Energy suppliers are meant to keep you updated with information regarding your switch via telephone, email or through the post.

If you have any questions about your switch and want some extra information, you can always contact your energy supplier for an update.

I’m in debt, can I switch?

If you are on prepay, you can still switch to a cheap tariff if your debt is under £500.

If you aren’t, it depends a lot on who your supplier is, and your payment type – British Gas say that you need to pay off your debt before you switch.

However, other suppliers may not require that.

Aren’t all energy suppliers the same?

In some ways, many energy suppliers are almost identical as they receive their energy generally from the same place, with a few green energy exceptions where companies invest in renewable energy generators.

However, it’s not just about prices or even the energy necessarily.

Many customers say that customer service is more important than the price of the tariffs, which many customers are happy to pay a bit more to stay with a friendly and helpful energy supplier.

If you can get both a cheap deal and excellent customer service, the supplier should be considered in your comparison.

Can my tariff come with me when I move?

Some suppliers will allow you to take your cheap tariff with you when you move, but you need to get in contact with your supplier first and check.

You should also check the rates in your new area (with a postcode if you have it) as energy is charged differently depending on your location.

Once I switch, will my supplier tell me if prices rise?

Unfortunately, prices are predicted to rise between 30% and 40% in the next five years, unless there are some massive changes politically in the world.

However, your energy supplier has to warn you about these price rises with a minimum of 30 days notice.

Conclusion

Are you on the cheapest energy deal? Would you like to learn more about your energy?

Take a look at the EnergySeek guides to find out more about your energy, or look at the top energy switching services to compare prices.