Switching energy for a cheaper deal may not always work in your favour. In the words of the proverb, ‘the grass isn’t always greener’. Many smaller energy suppliers have gone bust over the last 18 months, many of whom secured customers by offering cheaper deals. However, the pain and cost of moving to one of these smaller suppliers may prove more costly.
For example, a BBC Breakfast business news presenter Ben Thompson switched his energy supply to one of these new cheaper energy suppliers, which then went bust. Thanks to Ofgem’s security net, he was automatically moved to a new supplier. However, that new supplier did not put Ben on the cheapest tariff. He then had to make a call to his new supplier to be moved to a cheaper tariff. Ben then found out that there was still a cheaper tariff available which he wasn’t informed about.
It is often the smaller energy suppliers which are the worst performing in terms of customer services. Recent Citizen’s Advice rankings show that energy suppliers Outfox The Market, Eversmart Energy, PFP Energy, Pure Planet and iSupply were the worst performing.
The best performing energy suppliers were So Energy, SSE, Engie, EDF Energy and Igloo Energy. If you’d like to switch to one of these suppliers, find the cheapest deals on our whole of market energy price comparison service.
This is the problem with automatic switching services. Not all suppliers are the same. If you switch to a cheaper tariff, it will likely be to one of the smaller energy suppliers, which given the recent statistics, are much more likely to go bust. That is why at Bills Dashboard, we do not auto-switch our users. We want our users to have control of their household bills so we have given them a platform to make it much easier. However, we do not want to take that supplier decision out of their hands. There are many reasons not to choose a particular supplier, such as customer service, location of call centres, previous bad experiences and many other. So remember, the grass isn’t always greener on the other side. Or, to use another corny proverb, you may just jump out of the frying pan into the fire.