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Six Reasons Why You Should Often Switch Your Utility Providers

The truth is, just thinking about switching utility providers sound like a headache. No one can blame you. It does feel tedious to think about paperwork and dealing with a new experience rather than sticking with your current provider thinking that whatever extra you pay them allows you to have a relatively stable situation.

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However, energy prices are always rising and falling. You might have read about some notices involving price increases and added service fees. It is indeed easier to shrug them off because it will take more time to replace your current provider. And you do believe time is valuable than money.

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But changing your utility providers, especially if you've been loyal to them for quite a long time, is beneficial because it can save you money when you're spending less energy than you believe. Doing so also gives you an opportunity to maximize the great deals offered by other providers.

Here are six more reasons to switch utility providers when you get a chance.

You've Used Them For a Long Time

Being a loyal customer to a particular service provider, you may have enjoyed some rebates they offered for long-time customers. You joined them particularly for the first-year low-payment and free installation, which was part of their promotions.

However, these providers can change their rates depending on the current state of their economic affairs. The first year benefits you had are no longer applicable. In fact, it's possible you were urged to purchase the "first-year benefit" package without them explaining that you had a "floating" variable rate, which counts your electricity or gas use based on its wholesale value, which has you paying more.

If you need to cut corners, switch to another provider that offers a better payment plan that can save you money. Despite having to pay another instalment fee, it beats having to pay higher prices unnecessarily.

You Might Be Using Less Energy Than You Thought You Did

In line with your existing payment scheme, gauging your energy use for both electricity and gas helps you determine the payment scheme you need. In most countries, energy companies have you pay through the following schemes:

Fixed: You pay for a flat rate on all electricity and gas units (usually per kilowatt-hour and gallon) despite the price changes in the market. You end up underpaying or overpaying, but it guarantees consistency and relative budgeting stability.

Floating: You pay the current price for each electricity and gas unit.  

Hybrid/Combined: A percent of your billing statement has a flat rate and the remaining is billed in a "floating" manner.

If you're using less energy, floating rates might just be for you. However, flat rates may be useful for high-consumption homes, but if the energy economy improves, then you might be overpaying.

Energy Prices are Consistently Rising

It is important to keep watch over the energy prices in the market. Given the competitiveness of the country's energy market, some companies are willing to provide competitive prices to attract more customers.

However, before you do, make sure to use utility service comparison websites. These conveniently give you the price range of services (per energy unit), which can work to your advantage. You may also find advantageous first-year deals that can save you hundreds of pounds in expenses.

It is also important to point out that some of these deals with incentives might not be budget-friendly in the long run, so make sure to gauge their efficacy.

The Best Deals Come Out During Winter

Despite the increased prices of energy commodities in the market during winter, companies try to provide a competitive price for customers. Winter is a great time to switch providers because the best first-year deals come out during this season.

In some cases, especially when you use price comparison websites, these deals are good enough for long-term budgeting concerns. However, make sure to check each detail of the terms of service before making a choice to avoid any hiccups.

The Current Provider's Competency In The Market

If your service provider is currently providing sub-par services compared to its market rivals, then the time to switch is imperative. There are reasons why the provider has stopped innovating or providing efficiency-improving services to their customers:

• They are complacent with their customer population

• They are only maintaining their status quo with most customers not thinking about switching providers

• They are a household name in the energy industry

Regardless of the reason, it is not good for the customer in this case because once prices rise, they will not provide efforts to give you alternatives to give you an excellent experience with their service. Therefore, switching is better in this case.

Excellent Customer Service

Speaking of customer service, if you wanted to resolve an issue regarding a service provision and the provider's customer service department only shrugged you off or gave you a blank reply, then it is time to settle your accounts and move on from the company.

You are a paying customer and you deserve clarity regarding the fiscal areas of your service. In fact, the company, regardless of their stature, must always accommodate your statements and address your complaints.

If you are looking to switch today, just click here.