Making Cents: Putting your energy into switching service providers will save you money

It may have slipped by in the deluge of worrying news we face on a daily basis but consumers are looking at increases to their energy bills in the coming months. In addition to increased usage in the winter months, a number of suppliers have raised their rates and the PSO (Public Service Obligation) levy went up significantly at the start of the months 

The PSO is charged to all electricity customers in Ireland and supports the generation of electricity from sustainable and renewable sources. It was previously €2.84 a month (ex VAT), added up to €36.68 a year including VAT.

But from October 1, it has risen to €6.52 a month, a 130% increase. This works out at €88.80 per year including VAT.

Given these increases, Brendan Halpin, CEO of Cork company WeSwitchU.ie is urging everyone to take five minutes to look at their electricity and gas contracts to see if they are eligible to switch providers.

Switching energy providers is one of those tasks we know will save us money but which we still rarely do. The most recent update from the Commission for the Regulation of Utilities (CRU), covering August, showed the number of electricity monthly switches declined 11% year on year and 7% month to month. Gas switching rates increased, but only by a miniscule 0.4%. 

Mr Halpin is urging consumers to bring those numbers up. 

“Take a look at your bill and if you’re out of contract, meaning you’re 12 months with the same provider, then switch," he says. "It still baffles me how many people stick with the same company every year when the savings they can make by moving are significant.

Don't let inertia trump effort. Energy providers bank on the fact that we’re all busy, and moving provider is often regarded as another hassle we can do without.

He points out that many of us are willing to put ourselves out to make savings in other ways. 

"If you’re prepared to drive to a less convenient supermarket for your weekly shop to save money, why wouldn’t you invest five mins of your time into switching energy providers?” he asks. 

With temperatures dropping and heating systems being cranked up for winter, Halpin says now is the perfect time to review your energy costs.

“With so many people continuing to work from home energy bills this winter are going to be much higher than usual, so save yourself the shock of a bigger bill by ensuring you’re getting the best deal available.” 

According to a CRU annual report, in 2019 the average price differential, and thus potential savings, for a domestic customer switching from a standard tariff to a discounted tariff was €207 for a domestic electricity customer, €170 for a domestic gas customer and €401 for a domestic dual fuel customer.

WeSwitchU.ie aims to take the hassle out of switching providers every year by doing the shopping around and switching for customers after a once-off sign-up. Every year it reviews a customer’s energy consumption and switches them to the best on the market, maximising the savings available. Since establishing in March it has saved over €1 million for its customers with average savings of €550 per annum and hundreds of customers pocketing €1000 plus.

Deal of the week

With in-person get togethers likely to be limited at Christmas, many will be sending more parcels than ever this year. 

Postage can be expensive but an Irish website aims to save people both time and money. 

ParcelDirect.ie has partnered with some of the largest courier companies in the world to provide an alternative, delivery services without the need to leave the security of your home or office to send your parcels. Customers can log on to ParcelDirect.ie, enter parcel details and destination, and get lots of quotes to choose from. 

You then pay, print off postage labels and the courier will call to your home or office to collect the parcel. You can also track your parcel by using the online tracking tool.

ParcelDirect.ie say their service offers the chance to make real savings on postage, suggesting a 5kg parcel sent within Ireland using the service costs €8.85, saving you €6.15 compared to traditional means. They promise even more savings for larger parcels and items being sent abroad.

Visit www.parceldirect.ie.