Compare Gas and Electricity Prices to Save Money on Your Energy Bills

by Sam Jones Content Creator and Link Builder

Besides reducing the amount of energy that you use on a daily basis, one of the best ways to save money on your bills is to compare gas and electricity prices. This helps ensure that you are getting the best value for money, are on the most appropriate tariff, and that you won't need to sit in a cold, dark house.

As well as the actual price of energy, there are a number of factors to consider when comparing gas and electricity prices. Can you combine both energy bills and save money? Do you receive a discount for paying by direct debit? Can you use a supermarket loyalty card, in order to enjoy savings that way? You will also need to consider whether a supplier has a good reputation, whether they are due to increase their prices, and the terms of the energy agreement itself.

Dual Fuel Discounts

People that pay for electricity and gas separately, and that pay by a means other than direct debit, are those that usually have the highest monthly charges. Simply swapping so that both of your energy accounts are with the same supplier could help you save a considerable amount of money.

Dual fuel discounts are available from most suppliers, and while each supplier will offer different discounts and deals for those that do opt for a dual fuel account, savings can equate to £5 per quarterly bill. You should be aware that this will not necessarily mean that you will achieve a saving, but it will help ensure that you are getting the best deal when you shop around.

The Lowest Unit Price Doesn't Necessarily Mean the Best Deal For You

Most consumers immediately look at the gas or electricity unit price, and head for the one that is lowest. However, this may not provide the best deal for your circumstances.

Most households use energy differently, and you need to consider your own energy usage pattern to determine the type of tariff that will offer you the best overall deal. If you use most of your electricity in the evening, or at night, then you would be better served with a tariff that charges separately for these periods.

Consider Your Energy Usage

One of the most important factors that will help determine whether you get the best deal is how you currently use energy. Take a look at your recent bills, and even consider having a smart meter so that you can ascertain exactly when you are running your electricity and gas meters.

Most people that work will find that they use the majority of their energy in the evenings and at weekends. The daytime is usually the most expensive time to use energy, but only if you have a tariff that differentiates between the time of day that you do use energy. If you have a single rate tariff, and use most of your electricity at night, then consider swapping to a day/night or dual rate tariff to help bring costs down.

Fixed Rate or Variable Rate Energy Tariffs

Energy prices have been consistently rising over the past few years, and it seems likely that more price hikes are imminent. Many consumers are taking advantage of fixed rate tariffs in a bid to try and counteract these increases. These tariffs guarantee a set price for a given number of years. You do run the risk of losing out, if energy prices decrease, but if you believe that prices will only continue to rise then you should consider a fixed rate fee, rather than a variable one.

If you believe that the market is set for a much needed reduction in prices, then choose variable rate tariffs instead. You may find tariffs that offer a fixed rate for a year, two years, or more, by comparing gas and electricity prices to find the best deal.

Additional Fees

Some energy contracts carry additional fees, and these can quickly inflate the price of your quarterly or annual bill. If you like to shop around and compare gas and electricity prices on a regular basis, then make sure that you take any cancellation fee into account when comparing prices. Even if there is a cancellation fee, this should only be charged if you cancel within a given timeframe so it may pay to wait a month or two before changing supplier.

Matt Jackson is an online content writer. He creates copy on a large variety of topics, including energy and household finance and recommends uSwitch for more information on UK gas and electricity suppliers