Joining the Big Switch can cut energy bills

To mark it, a Scottish local authority is offering households throughout the country the chance to make huge savings on their gas and electricity bills, but people need to act this week if they want to get involved.

North Lanarkshire is the first Scottish council among an increasing number from across the UK to launch a Big Switch energy initiative. These enable individuals to benefit from collective deals negotiated on their behalf – the more people who register, the greater the organising authority’s buying power.

North Lanarkshire’s initial switch, which took place this spring, will save participants a combined total of more than £200,000 on their annual bills.

It is now giving households from all over Scotland the opportunity to sign up for a new cut-price offer, provided they register by Monday 2 November.

Des Murray, the council’s head of housing property, said: “Our scheme makes it quick and simple for everyone to potentially save on their bills. Residents who took part in our first Big Switch campaign are reaping the rewards to the tune of £313 on average.

“We launched the scheme earlier this year and more than 1,700 households took part. The savings some people made were incredible, with some saving as much as £800 per annum.

“Since then, we’ve had lots of people asking how they could take part, so we decided to launch the Big Switch 2.”

North Lanarkshire used national switching organisation iChoosr to auction its energy contracts, and the suppliers offering the best 12-month fixed prices won.

In the spring auction, E.ON was awarded the contract to supply electricity-only participants, British Gas won the dual fuel business and Ovo got the contract for pre-payment customers.

The Big Switch 2 auction has just taken place, with E.ON winning the electricity and dual fuel contracts and Ovo again getting the pre-payment business. This time participants’ average annual saving is expected to be just under £230.

Everyone who registers before the closing date will receive details of the deal appropriate to their needs plus a calculation showing how much they would save by accepting. They can then choose whether to go ahead or to remain with their existing provider.

With the coldest months fast approaching and almost 500,000 people coming to the end of existing fixed-price energy tariffs, it is the perfect time to act.

Comparethemarket.com says 50 fixed deals expire between September and November this year, affecting around 470,000 customers. If they do nothing, they will be automatically transferred to their suppliers’ standard tariff, incurring an average annual price hike of £120.

James Padmore, Comparethemarket’s head of energy, said: “This data reveals the inherent financial peril that consumers may face if they don’t keep a close eye on their finances. If you fail to switch tariffs in the coming year, you could be paying far more than necessary.

“Our research earlier this year also found that nearly a third of consumers are shocked when they open their energy bill. If people do not shop around and simply roll onto standard tariffs, that nasty surprise may affect an even greater number.”

According to website Gocompare.com, four out of five homeowners plan to delay turning their heating on, to leave rooms unheated or to stop using energy guzzling devices in a bid to keep their costs down this winter.

However, it says many could make far greater savings – around £728 million a year in total – without freezing or giving up gadgets and appliances, simply by moving to a more competitive supplier.

Despite this, more than half of those taking part in its survey hadn’t switched for over three years and one in six had never changed. The most common reasons given were that they thought it would be difficult or wouldn’t lead to a worthwhile saving.

Gocompare.com’s energy spokesperson, Anders Nilsson, said: “No-one should be put off changing their energy provider because they fear that it’s too complicated or disruptive to move supplier.

“When you switch gas or electricity the new supplier will continue to use exactly the same wiring and pipes as you currently use. There will be no interruption to your service.”

For tips on painless ways to reduce your usage without suffering, go to www.energysavingtrust.org.uk/domestic/scotland or call Home Energy Scotland on 0808 808 2282 for free impartial advice.

To be part of North Lanarkshire’s Big Switch 2, you will need details of your current provider and energy consumption from a recent bill. Registration costs nothing and there is no obligation to proceed if you decide against it.

Simply visit www.northlanarkshire.gov.uk/thebigswitch or call 01698 274526 by Monday 2 November.

CASE STUDY

Lynda Stevenson was stunned to discover she would save £543 over a year by changing her gas and electricity suppliers through North Lanarkshire Council’s first Big Switch.

The council officer, who lives in Shotts, had registered for the scheme to find out if she could reduce her bill.

She said: “In the past, we’d only changed suppliers when we moved house and we were happy with the service at our current company, but I thought it costs nothing to register, so why not do it? It’s just like putting in a note of interest – you’re not obliged to participate.

“When I received the offer email, I was absolutely gobsmacked because, although I’ve got two school-age children, we’re not a high use household.”

She found the actual switch quick and simple. Lynda said: “It was too good an opportunity to miss, so just I clicked the links to accept.

“They emailed back the transfer dates for our gas and electricity and the payment information, and that was it. It was no problem at all and we’ve not looked back since.”