Supermarket energy deals - check before you switch

15 February 2012 17:06:55

Supermarket energy deals - too good to be true?

If you've spotted one of those energy deals in a shopping centre or supermarket recently that sound just too good to be true, remember to do some calculations before signing on the dotted line. A study by consumer watchdog Which? suggests the savings may be far lower than those quoted by salespeople - and in fact customers often lose out as a result of switching to these deals.

Some deals could cost hundreds
Which? sent undercover researchers to supermarkets to find out how much they could save by switching to one of the deals promoted in-store. Salespeople, including those from the large energy companies, quoted annual savings of between £20 and £142 as a result of switching to their deals. But in fact, the researchers would have lost between £32 and £311 a year by moving from a standard tariff to the suggested deal.

'Misleading' salespeople
The consumer group also found that, even when asked, just two out of 13 salespeople admitted customers might be able to find a better deal elsewhere. Executive director Richard Lloyd described the situation as "simply not good enough" and urged energy companies to stop misleading customers.

So how do you find the best deal?
The Which? findings highlight that however concerned you may be about the cost of leaving your radiators on 24-7 during the current cold spell, it's still important to do your research before signing up to a new energy provider - something that can easily be done by going online to compare gas and electric deals. In order to work out the best deal, you'll need details of your recent energy consumption, either in the form of an annual statement or your last year's worth of bills.

Next, use an online comparison tool to compare the various deals that are available, bearing in mind that you may save extra money if you agree to pay by direct debit and manage your account online. It's also usually best to get a dual fuel tariff, where both gas and electricity are provided by the same supplier.

One final thing that's worth considering is a fixed or capped tariff, as these deals will protect you against any future price rises. The downsides to these deals are that they tend to be more expensive to begin with, and there is usually an exit fee in the event that you decide to change tariffs before the contracted end date. In the case of fixed-price tariffs, you also won't benefit from any price drops that occur during the fixed-price period.

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