There is no doubt that switching energy providers on an annual basis can save you money. But it’s not the only way to save money. By simply calling your existing energy provider, you could negotiate an even better saving compared with switching.
But what about switching energy providers?
The easiest way to see what the cheapest provider is on the market currently is to use a comparison site like Bonkers.ie. You can use them to switch providers and you will get the deal chosen by you. It’s a free service, and they get paid commission by the provider you switch to.
However, switching is not the only way to get a great deal and I’ll explain below. There is also another saving you can achieve by staying with your existing provider. If your contract has expired, they will backdate any negotiated discounts to the date your previous contract ended!
Negotiating with your current providers
Before you begin, you should almost be at the end of (or already finished) your contract. If you are within contract, you will be subject to breakage fees to end your contract. You should avoid this.
Most energy providers apply a discount rate to energy tariffs which expire when your contract runs out. If you don’t remember that your contract has ended, you will end up being on higher rates than when you were in contract.
There are 4 steps required in order to be in the best position for negotiation. It does require a little bit of work, but I’ve created a spreadsheet that will help you save time in calculating the savings while negotiation.
Gather your last 6 bills
You can also use estimates if you know what your average energy consumption is.
Research the best deal
Use Bonkers.ie to show you the best rates.
Analyse
Make a copy of this spreadsheet and enter the best rates you found and, if you like, your current rates.
Call your current provider
Explain you are thinking of switching and be ready to provide the best rates you found (including cash back if applicable) to the agent.
Once they come back with their first quote, enter the rates into the spreadsheet and see what your annual spend would be based on their new rates compared to the best deal. If there is a difference, say this to them and they will offer you a better deal.
Don’t get confused with rates before VAT and after VAT. Just ask for the rates before VAT and the spreadsheet will do the rest.
TIP – If you are out of contract already, your energy providers will backdate the discount to when your contract ended. This results in a credit for your next bill! You will not get this credit if you switch providers.
That’s it!
By remaining with your current provider, you save a little bit of paperwork. You won’t have to give them meter readings, bank account details, etc.. They sometimes offer you better deals than what is on the market.
If you are looking for other ways to save money, check out how you could save money by switching mortgages to a new bank.
