Small homes could be paying over odds for energy

It’s not just location or heating type that affect which energy supplier can give you the best deal, it also depends on your level of energy consumption.

A new report from moneysupermarket.com shows that bill payers living in smaller dwellings such as flats and terraced houses could be paying more than they have to for their gas and electricity by not matching their tariff to their level of consumption.

According to the report, when choosing an energy tariff the majority of Brits will choose from costs based on the average consumption of a medium house: 3,300 kWh of electricity and 20,500 kWh of gas. However, the research shows that levels of use can vary greatly depending on the size of the home, and so too can the cost.

For example, the British Gas WebSaver 3 is the cheapest product on the market in all of Britain’s 14 regions for a house with an average bill of £1,018 per year. However, for low consumption bill payers, such as single dwellers or those living in flats, the SOL 15 tariff from npower offers the best value option for 12 regions with British Gas showing up as cheapest in only the remaining two with an average cost of £527 a year.

Scott Byrom, utilities manager at moneysupermarket.com said:

“The figures for an ‘average’ house are used in advertising and as the default numbers when comparing prices. So, if you don’t know your typical energy usage, you may well choose a tariff that isn’t the best deal for you and doesn’t represent your household’s consumption.

“For bill payers looking to swap their supplier to save cash as they emerge from this year’s first round of price cuts, it’s important to remove the guess work and know exactly what your energy consumption has been over the past 12 months by looking at your bills – there are clearly savings to be made. If you don’t have bills going back that far, phone your energy provider and ask for the historic details of your energy use.”

“It’s clear online tariffs remain the best deals on offer for Brits, no matter what your consumption. But whether you pay by monthly direct debit for an online tariff, or by quarterly cash or cheque for a standard deal, just because a provider is cheapest for your neighbour, it doesn’t mean they’ll be cheapest for you. I advise each person to evaluate their own situation and find the right tariff to cut the cost of their bill. Shopping around for the best energy deal is a quick way to make big savings”.

If you want to make sure you are on the best tariff for you, TotallyMoney.com can help. Visit http://www.totallymoney.com/utilities/ now to compare deals in your area. You could save hundreds per year.