Image courtesy of Leo Reynolds
In today’s financial climate, it has become an important part of life to make cutbacks and savings wherever possible. Deciding which gas supplier to select to get the best possible deal on gas prices may initially appear to be a daunting task. There are over twenty gas suppliers, variable gas prices and numerous tariffs to take account of, as well as special deals for certain consumers. Many consumer websites now offer the facility of comparing suppliers and the tariffs they offer as well as gas prices.
Picking the right tariff can achieve excellent results in terms of savings. It is not as simple as choosing the lowest gas prices i.e. the price per unit of gas, the tariff chosen can make a considerable difference to overall costs as well. The most widely used tariffs fall loosely into seven categories but there will be variations, depending on the individual supplier and how the consumer’s bills are paid.
Many suppliers now offer online tariffs. An internet connection is essential as the account is paperless and managed entirely online with communications being sent via email and meter readings entered by the consumer directly onto the supplier’s website. Savings made by the supplier in terms of reduced overheads are passed onto the consumer in the form of an annual discount.
In certain areas single fuel tariffs, where gas and electricity are purchased from different suppliers, are still the most economical choice. Duel fuel tariffs are the most commonly chosen, mainly because it is convenient to only have to deal with one supplier, but also because there is invariably a discount given for using both products.
Fixed or capped tariffs guarantee that the price of gas will not rise for a stated period of time, usually two or four years. The price charged per unit of gas will be higher than with a fluctuating tariff, but savings could be made if gas prices rise during the agreed term. Conversely, if prices fall, a fixed term contract could mean the consumer has to continue to pay at well above the market rate until the contract expires.
A tariff that is becoming increasingly popular with environmentalists is ‘Green Energy’. The gas supplier has to ensure that a minimum of eight per cent of all gas sales come from ‘green’ sources. They are also required to contribute a percentage of their profit to environmental charities or to fund further research.
Some gas suppliers offer ‘market tracking’ tariffs. Gas prices are reviewed by the supplier quarterly and are adjusted either up or down in accordance with current market trends. They are a good idea for consumers who don’t mind fluctuating prices, without the need to constantly change supplier.
To potentially enjoy the biggest savings, one solution could be to compare the gas suppliers who offer a ‘mix and match’ tariff. For example, by combining discounts given for paying by direct debit and paperless billing, whilst also opting for a duel fuel tariff could be the best deal in a particular area. The important thing is to take the time to research thoroughly before making a decision.
