Tue, 05/19/2020 – 12:55
Demand for energy plummets during coronavirus lockdown
Tue, 05/19/2020 – 11:57
Household energy deals have fallen to their cheapest rate since summer 2018, according to new data from Uswitch.
This is because the cost of energy to suppliers has fallen, and this saving has been passed on to consumers who take out new deals.
The cost of wholesale electricity in April 2020 dropped 44% compared to the same time last year, with prices falling from £43.55MWh to £24.18.
This decrease was triggered by a decrease in global demand for energy during the lockdown, Uswitch found.
Households could save hundreds of pounds by switching to a cheaper deal.
Will Owen, energy expert at Uswitch.com, says: “Life is far from easy at the moment, but one small chink of light is that energy prices are lower now than they have been for almost two years.
“This will be particularly welcome news for any homes consuming more power than usual due to the lockdown.”
Currently the Fix’D 20 11.0 tariff from Outfox the Market is the best on the market, costing just £764, and is set for 12 months.
This is closely followed by the Green Super Power (1 Year) v4 + Free Boiler Service from Tonik Energy which costs £770.98 for 12 months.
The cheapest tariff from the Big Six is the British Gas Energy and Home Services May 2021 deal, costing £806.
The table below shows the top energy deals available right now.
|Supplier||Plan name||End date||Average price (£)|
|Outfox the Market||Fix’D 20 11.0||12m||£764.10|
|Tonik Energy||Green Super Power (1 Year) v4 + Free Boiler Service||12m||£770.98|
|Avro Energy||Simple and SuperFixed||12m||£792.85|
|Together Energy||Green Together Fixed May21||12m||£797.73|
|Green Network Energy||GNE Spring Sunrise V4||12m||£798.62|
|Igloo Energy||IGLOO PIONEER||N/A||£805.06|
|British Gas||Energy and Home Services May 2021||2021-05-31||£806.31|
|npower Select||Exclusive 12 Month Fix v2||12m||£806.73|
|Yorkshire Energy||Green Flamborough – Fixed until 31st July 2021||2021-07-31||£811.19|
Source: Uswitch 2020
It is important to shop around before switching energy provider. Price comparison websites are a great place to start when shopping around.
They allow you to search through hundreds of deals from different companies quickly and easily.
You will need to have a recent energy bill or annual statement to hand which contains details about your current energy plan.
If you do not have a recent energy bill, contact your current provider to get one.
As well as looking at price, be sure to check how their customer service is rated to ensure that you get the right assistance if you have a query.
When you have found the right deal, your new provider will arrange the switch for you.
Most energy companies have signed up to the ‘Energy Switch Guarantee’ which means that it should not take more than 21 days to complete your switch.
From 1 May 2020, suppliers who take longer than 15 working days to make the switch will have to give you an automatic £30 compensation payment.
Savers are being advised to lock in before they drop further
Tue, 05/19/2020 – 11:44
Rates for savers looking to put their money away for up to a year have now fallen below 1% for the first time in three years.
The average rate on one-year fixed bonds is now 0.99%, the lowest since May 2017, when it was 0.98%.
This means that since March the average one-year fixed bond rate has fallen by 0.16% percentage points.
Cash Isa savers have been hit even harder, with one-year Isa rates falling to 0.91%, a level not seen since June 2017.
Moneyfacts says that the current number of savings products for sale overall is the lowest since February 2017.
The total number of savings accounts, including Isas, now stands at 1,548, down from 1,768 in March 2020.
Rachel Springall, personal finance expert at Moneyfacts, says: “As we had seen last month, savings providers pulled the most deals on a month-on-month basis since our electronic records began in 2007 and while the number of products to disappear month-on-month between April and May is less, deals are still disappearing.
“Those savers who are about to come to the end of their fixed bond may wish to prepare themselves for a shock, as they will find the top rates have dropped substantially over the years.”
On 19 March, the Bank of England cut the base rate for the second time in nine days to a record low of 0.1%.
This was done to help support the economy amid concerns about the coronavirus pandemic.
When this happens banks usually pass the base rate cuts to their saving deals in full.
While fixed-term savings deals initially remained competitive, savers are now beginning to feel the impact of the base rate cut.
Also, the coronavirus lockdown means many households are spending less and are looking for somewhere to save their cash.
As a result, many smaller providers are unable to cope with the increased demand and have had to withdraw products from the savings market.
Springall says: “Providers are perhaps cutting rates to deter deposits due to demand or find they are much higher up the rate tables than they can cope with.”
The best one-year fixed bond rate currently on offer is from Raisin at 1.43%. You can open this account online with a deposit of £1,000.