Households can save up to €1,000 a year by switching energy suppliers, according to bonkers.ie, as a cost-of-living crisis and supplier price hikes bite.
Following backlash over comments made by junior Government minister Seán Fleming that people should “shop around” rather than “complain” about rising costs, a spokesman for the product comparison and switching site said there are “absolutely savings to be made,” although energy remains overall more costly than before.
An estimated two-thirds of consumers in Ireland are currently overpaying on gas and electricity bills, as they fail to switch their energy provider and take advantage of associated discounts.
“He was right in what he was saying, but obviously, it was maybe not addressed particularly well,” spokesman for bonkers.ie Daragh Cassidy said of Mr Fleming’s comments.
“I can understand why it has annoyed people so much, because I suppose there was a feeling that the Government wasn't doing enough because the Government is responsible for some of the increase in the cost of living, but he was correct about the savings.”
Average savings
At present, an average customer who switches their energy supplier can save between €500 and €600 in a year, Mr Cassidy said, although some could save “far more” and others less depending on their current supplier, rate and energy usage.
“That's somebody who uses an average amount of gas and electricity, but if you are in a home with maybe more than three bedrooms, or with a low energy rating, you can save even more,” he said.
“If you're in a large four bed semi-detached home with an E energy rating, you're going to be using a lot more money and therefore save potentially a lot more than somebody who may be living by themselves in an apartment that's at an A rating and doesn't use much energy.”
Some households paying standard rates with smaller suppliers hard-hit by the energy crisis could save upwards of €1,000 on bills in a year by switching, Mr Cassidy said.
“Last year, some suppliers raised prices five times. So for some of these customers, if they were to switch they could actually save maybe over €1000 on their bills - it's not an insignificant amount of money at all,” he said.
The best way to offset the price hikes is to switch supplier. Although prices are rising across the board, some suppliers are offering new customers discounts of up to 40% or more to entice them to move! The average switcher will save almost €600 a year.
— bonkers.ie (@bonkers_ie) February 8, 2022
However, the key point is that all consumers seeking to save should switch energy provider every 12 months, Mr Cassidy said.
“Everyone should switch. I think there's a feeling that because prices are rising it doesn't pay to switch, but you'll still get a discount for doing so. Most of the suppliers are offering discounts of maybe 30 to 40 per cent to new customers to entice them to switch, so even though prices are going up, you'll still pay less than you otherwise would have by switching.
“Our mantra for energy in particular is to look at switching every year, but also look at switching every few years your broadband and your TV, your health insurance and your mortgage as well.”
Despite this, an estimated two-thirds of consumers are currently not switching.
“The switching market is quite active at the moment, so in any year, around maybe 15 to 20 per cent of people would switch their gas and electricity and then maybe another 10 per cent might look at renegotiating their deal," Mr Cassidy said.
“So really any year, up to 30 per cent of households have usually tried to seek out better value, but... we find that they tend to be the same households, which [leaves] maybe 50 to 60 per cent of households who haven't actually switched in years. And those households are definitely the ones that would be overpaying and that we would be really encouraging to switch.”
