However You’ll Need to get a Smart Meter
British Gas is preparing to offer their lowest tariff in three years, in order to help make them more competitive with the Big Six and smaller suppliers.
If you’d like the lower tariff, there’s a catch. In order to take advantage of the lower tariff, customers will need to either already have a smart meter or have one installed.
Falling Energy Prices
With an average cost of £897, this makes the Energy and Boiler Cover Green Nov2020v4 dual-fuel fixed tariff one of the lowest available, but only if you have a smart meter. Customers who don’t have smart meters, on the other hand, will face an increase in their energy costs up to £1,177. That’s a difference of £280.
The energy market is fast becoming more competitive. In fact, as British Gas prepares to lower their prices, other fuel providers in the Big Six are going to follow suit. These include Npower, Eon, EDF and Scottish Power, amongst others. The lower tariffs come as a result of lower wholesale prices in recent days.
More Competitive Markets
Market analysts have said energy tariffs will be the cheapest now—the lowest they’ve been in three years. But the analysts say there’s now way to predict if prices will remain this low over the coming weeks and months.
With this in mind, they’re recommending that energy customers review their energy tariffs and make sure they have the lowest priced plans available, especially with winter fast approaching.
Energy providers, such as Scottish Power, are staying in step with British Gas’ new tariff. In fact, Scottish Power is about £2 cheaper than British Gas. However, both energy providers new tariffs require customers to have a smart meter. Those without a smart meter will face much higher energy costs.
The Push for Smart Meters
The reason for the smart meter push is that energy providers are under pressure from Ofgem to install a certain percentage of smart meters per year. The goal, in fact, is to install smart meters in every home in England, Wales and Scotland by the end of 2020.
If the companies don’t meet these smart meter install rates, they’ll face high fines from Ofgem, which is the UK’s energy watchdog.
Smart meters are touted as making things easier for the customer with one meter for both electricity and gas. They’ll provide customers with an in-home display to read their energy usage, how much their energy use has cost, meaning customers will only be billed for the energy they’ve used.
Energy providers are also telling their customers that smart meters will help them take advantage of a broader range of tariffs, which will help them lower their energy costs.
Even with the goal of having a smart meter in every home, customers should be aware that these meters are not mandatory. No one can be forced to have a smart meter installed.
Small Energy Providers May Have the Lowest Tariffs
On the other hand, there are some energy suppliers who have low comparable low tariffs, priced just slightly above British Gas. It could pay for customers to check out the small suppliers’ tariffs. For instance, Outfox the Market has one of the lowest tariffs at £864/month with their One Variable 7.0 tariff. However, Green Energy’s Oak tariff comes in at £867.
In addition, neither of these tariffs requires customers to have a smart meter installed. This could work to lead customers away from the Big Six suppliers, instead turning to the smaller energy providers. The benefit to some customers? They don’t have to change over to the smart meter. Many people don’t want smart meters, so these lower tariffs, from the smaller energy suppliers, could help customers save money without being forced to opt for a smart meter.
Some of these Small Energy Supplier Can Include: – Compare your what you are currently paying and see if you can save upto £420 per year, by a simple switch to a supplier below.
- Entice Energy
- ESB Energy
- Flow Energy
- Fosse Energy
- Foxglove Energy
- GB Energy Supply
- Go Effortless Energy
- Good Energy
- GOTO Energy
- Great North Energy
- Green Energy (UK) plc
- Green Network Energy
- Green Star Energy
- Gulf Gas & Power UK
- Igloo Energy
- Lumo Energy
- M&S Energy
- MoneyPlus Energy
Advice to Customers
If you’re looking for a lower energy tariff, then be sure to check out tariff comparison sites to see what deals might be available. If you find a lower tariff, it’s generally possible to switch over right away, whether you have a smart meter or not, depending on the energy provider’s requirements.
For customers interested in getting a smart meter, now’s the perfect time, while tariffs are at their lowest.
It makes sense to take advantage of these lower energy tariffs now, before the coldest part of winter hits.
Ofgem: How to switch my energy: https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/how-switch-energy-supplier-and-shop-better-deal
Citizens Advice: Switching Energy Advice: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-a-better-energy-deal/switching-energy-supplier/