Households could save over €2,000 on energy bills by switching

Up to €2,300 could be saved by switching energy providers, according to WeSwitchU.ie. File Picture: John Stillwell/PA Wire

Canny households could save hundreds of euro – in some cases, more than €2,000 – just by taking the time to shop around and switch energy firms, a consumer website has claimed.

WeSwitchU.ie said up to €2,300 could be saved in some homes, despite price hikes by energy companies in recent weeks.

A report from the Commission for the Regulation of Utilities (CRU) this week shows that Irish consumers remain stubborn when it comes to swapping their energy providers, despite vast sums of savings that could potentially be made.

Did you know you could save up to €300 per year by switching your energy supplier? With more people working and studying at home, if you're out of contract, now could be a great time to negotiate with or switch your supplier.https://t.co/z4lKRuZ88f

— CRU (@UtilityregCRU) March 12, 2021

Just 16% of electricity and 16% of gas customers swapped firms in 2020, the same as in 2019, even in the face of households being squeezed by the onset of the Covid-19 pandemic.

Chief executive of WeSwitchU.ie Brendan Halpin said energy providers trying to muscle competitor firms out of the way when it came to new customers meant attractive deals on offer, irrespective of universal price hikes.

"There are 13 energy suppliers in the market, all offering great introductory tariffs for new customers. My advice would be to switch and lock in these discounts for the next 12 months. This will negate the effect of price increases," he said.

He said worries around switching should not be a barrier to savings.

"There is huge inertia out there when it comes to switching providers but when you remove the obstacles and the perceived hassle, it could save people the cost of a family holiday in Ireland every year.”

According to WeSwitchU.ie calculations:

• Those living in bungalows or detached homes could benefit most by switching, with a gap of €2,300 between the highest and lowest dual-fuel rates.
• For semi-detached homes, savings of €915 could be made, and €705 for apartment or terraced-house residents.

Mr Halpin said based on average consumption, many Irish households can potentially slice €2,300 off their bills from a premium annual cost of €5,500 to a net cost of €3,200 with the cheapest provider.

The CRU's consumer report found 44% of electricity customers and 43% of gas customers had never changed providers.

Among those who have made the jump to another firm, the ease of it has been gradually improving since 2016 with 97% in electricity and 91% in gas saying it was easy to switch, the CRU said.

Some 12% of electricity and 15% of gas customers believe ability to pay bills has been impacted by Covid-19.