Cost

As seen in other financial industries and services, customers are largely motivated by price and how much could be saved each month. There has been plenty of media attention about price hikes and customers getting screwed over by their energy suppliers. To cost your energy consumption requires a bit of simple math!

You need to consider how much energy are you using (kWh) and how much is your energy provider charging you for that usage (retail price). An efficient household/property is going to use less energy on average and therefore be more likely to spend less money each month on bills. However, this is not always the case as you need to consider the retail price set by the provider and tariff.

According to ukpower.co.uk:

Household	Energy Usage Gas	Energy Usage Electricity	Average Annual Bill	Cheapest Bill
Small House/Flat	8,000kWh	2,000kWh	£790	£614
Medium House	12,500kWh	3,100kWh	£1,151	£879
Large House	18,000kWh	4,600kWh	£1,617	£1,220

https://www.ukpower.co.uk/home_energy/average-energy-bill

How do you stock up against these results? Check your energy bill statement and compare. Once you have your base line, you can see how much you’d actually be charged and could save!

Green Energy and Renewable Supplier Options

We hear ‘Green Energy’ and ‘Renewable’ terms banded around but do you know what it means?

Green Energy is defined as energy from natural sources such as sunlight, wind, rain, tides, plants, algae and geothermal. These sources are deemed as renewable i.e. replenished over time. The majority of energy suppliers will resource from a variety of resources such as nuclear, fossil (coal), wind, solar or even burning household waste (biofuels).

The UK is currently unable to power the grid on purely green energy due to lack of infrastructure, the ability to store energy efficiently and the challenge producing enough energy to manage peak time demands. So energy companies are left to offset their renewable with non-renewable.

Here is a summary of the big 6 resources for energy supply to customers:

Provider	Coal	Gas	Nuclear	Renewable	Other
Average	17.1%	32.3%	23.7%	24.3%	2.5%
NPower	16%	66%	1%	16%	1%
British Gas	2%	30%	34%	33%	1%
EDF	14.5%	8.6%	64.3%	12.3%	0.3%
E.On	15.7%	27.2%	10.7	40.4%	6.0%
Scottish Power	34%	36%	3%	26%	1%
SSE	25%	35%	7%	29%	4%

Results taken from the reported standard fuel mix values on each of the suppliers websites as a requirement by Ofgem.

Here are a few examples of suppliers doing something a little different:

OVO Energy - All tariffs are at a minimum of 33% minimum and one 100% renewable energy tarrif. Electricity production is 53.1% renewable and 46.9% natural gas.

Ecotricity – 100% green energy with 30% produced in-house from windmills and sunmills. Money goes back into investment to their own production /infrastructure. Green gas is a new idea so developing the Grass fed gasmill and planning 100% green gas for the future (currently 5%). Fracking free promise.

Bulb Energy – 100% renewable electricity (74% Hydro, 26% Biogen), Gas = 5% green. They also contribute £5 per member to the Tree Council.

Types of Tariff

Choosing the right tariff for you can depend on whether you are the responsible owner for provider (i.e. rental might prefer prepayment options), which region you are in or your payment preference (direct debit, online, receipt of paper bill etc.)

Here’s a summary of the types of tariffs available:

Fixed Energy Tariffs - Guaranteed standard charges and unit rates, usual until a defined end date. Normally cheaper than standard. No benefit from price cuts.

Standard Tariffs – Default out of contract tariff. Usually not the cheapest and can flex in prices according to market changes

Green Energy Tariffs - Either generation from renewable sources of energy or it will contribute towards environmental schemes on your behalf. Tend to be higher than average cost

Pre-payment Tariffs - Pay in advance for gas and electricity through top-up their meter using tokens, cards or a key. More expensive ways of paying. Fewer tariff options. Easier to budget

Feed-in-tariffs (FIT) - Energy supplier pays you to generate own electricity at home using renewable technologies

Fixed rate contracts tend to be the cheaper option and they can help you manage your bills easier due to having a fixed direct debit payment option. When your contract is up, take a look at energy providers by using a price comparison site or shop around with your local supplier. You can find out our switching tips here

Customer Experience

Which? Customer Satisfaction Survey of 2017 had almost 9,000 customers rate their energy supplier based on customer service, value for money, clarity and accuracy of billing and how the supplier helped them save energy. OVO Energy were top followed by Places for People Energy, Ebico, Flow Energy and Utility Warehouse. These suppliers were all rated above the Big 6.

The governmental body supporting consumers called Ofgem, have provided supplier recommendations following their last market review. Each supplier needs to demonstrate to customers:

• Value for Money
• Billing accuracy and clarity
• Help customers to save money through using less gas and electricity
• Customer Service and complaints management

Summary

Motivations for buying energy and switching suppliers can vary between people but above are a few factors, which should be considered when looking at your energy suppliers.

As consumers we need to promote the businesses that are working towards a greener future and pressure (or stop shopping) those who aren’t. We require the industry to invest into green technology (not just smart meters), the infrastructure and the supply chain to make sure we protect our environment and promote a sustainable energy system moving forwards.

So remember these questions:

• How important is it that my home uses ‘Green’ energy?
• Can I get the right tariff for me at a fair price?
• Could I be saving money if I switch?
• Will I get value for my money and receive good quality service?

Read our experience of switching HERE

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