The UK’s seventh largest energy supplier firm Bulb is the latest company to go bust and some 20 companies have already gone into insolvency this year due to soaring energy prices.
The energy watchdog Ofgem’s safety net will find a new supplier for domestic customers who’s supplier has gone bust and any outstanding credit balances are protected and will move to the new supplier.
Customers who have their energy supplier go bust are advised not to switch to a new one until Ofgem appoints one to you and you must take a meter reading.
If your new supplier charges a higher energy price then under your rights you are allowed to move to a new supplier and the customer will not be charged any exit fees.
Financial expert Kevin Mountford who is the CEO of Raisin UK has provided top tips for people to get the best deals to protect their wallets.
Mountford advises, “Firstly, don’t be afraid to compare gas and electricity prices, this is essential to get the best deal. Whilst price comparison websites work really well, you can also manually compare them yourself (on their websites or by ringing them up), or you can use an automatic switching service which works out the best deal for you.
“Price comparison websites can give you special tariffs that are exclusive to that website but remember that not all tariffs are shown. Some energy companies have their own tariffs if you switch direct, so make sure to not rely too heavily on these comparison websites.
“As tempting as it may be to just let an automatic switching services do all the hard work for you, it may cost you more than it could. Make sure to read their terms and conditions, and understand how they pick the best tariff for you.
“You may want to look into which energy suppliers they work with, as they may not be able to switch you to the cheapest one out there. And finally, check whether it’s a free service or a paid service – why pay additional when you can do it yourself?
“There’s no clear answer to the which is cheapest, fixed or variable tariff, question! When Which? Last checked on 16 November 2020, 41 of the cheapest 50 widely available tariffs were fixed deals.
“Energy firms compete to tempt customers to join, which is why they are attractively priced. The risk of cheap variable deals though is that companies can change the prices as and when they want.
“So that cheap deal may turn costly, and remember the ‘Energy Crisis’ that is causing all of this stress to begin with.
“Remember, the cheapest price doesn’t always mean the best. Consider their reputation with customers. Are they likely to increase your bill?”