3 Energy Myths Debunked

May 9, 2017 | by | 0 Comments
Pic credit Pexels

Pic credit Pexels

We’re very untrusting of poor old energy firms, the news doesn’t help but it leads to plenty of myths, paranoia and often even anger. To help you find some sort of peace of mind, and love your energy provider again, we have compiled together three of the biggest myths and what they actually mean.

The big names are the most expensive

News sites are quick to slate the well-known, big six brands when it comes to energy, which includes; British Gas, E.ON, EDF, SSE, Scottish Power and nPower, but are they all bad? If you focus on the media, it does look that way. The Daily Mail recently did a study on the big six, and according to the results, “The problem stems from the fact that around two in three households stay on expensive standard variable tariffs (SVTs) with the ‘Big Six'”. But is this accurate, or are just more of us using the big six so more likely to complain? Well, when you look into this myth in more detail, the people overpaying are those stuck on SVTs, which means with every energy hike, they’ll end up paying more unless they switch.

When you look on price comparison sites, there are around 154 suppliers to choose from and the price differences reflect the service, payment plans and how much you use. The only thing that seems to keep bringing the price down is if you switch as soon as the letter lands on your doormat to tell you about your imminent price hike.

Prices are all too high – there’s no point in switching

So, as we dissolve the myth that the big six energy companies are the most expensive, let’s look at whether switching will keep your bills low. Well, according to the Money Advice Service, it’s one of the best ways to keep your bills low. They say, ‘Changing energy supplier is easy and can knock hundreds of pounds off your bills. It doesn’t matter if you rent or own your home, you should be able to switch.’ It pays to devote some time to have a shop around to save yourself some money.

Fixed price tariffs are more expensive

Whether you go with a fixed price or a variable tariff is entirely up to you; both come with some degree of risk. In February, when the energy price hikes were announced it was because thousands of UK households were coming to the end of their fixed-rate contracts.

Essentially, this makes it seem like the best thing you can do is move from fixed tariff to fixed tariff but this way, you could miss out on the best lower deals. However, with the current market, you are better off with a fixed tariff. According to The Guardian, the energy market is unpredictable and if anything is changing, it’s that prices are going up. In the current market, it seems that you’re better off with a fixed tariff than a standard variable tariff.

 

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