There are many false assumptions floating around the electricity and gas markets. With high percentage savings and bundle deals being offered market wide, it can be easy to get swept up with the momentum of thinking you’re scoring the best deal available. But, does getting electricity and gas from the one provider actually save you money?
Always compare the market separately
To get the best savings on household energy costs, consumers should always research and compare electricity and gas separately. Too often comparison websites present the cheapest electricity offer and the same provider’s gas offer – with the gas offer frequently being quite expensive.
When you compare electricity and gas offers, it’s important to make it clear that you want the best electricity offer and the best gas offer available, and that this does not need to be from the same company. Simply said, it pays to dig a bit deeper and read the fine print on comparison websites.
Convenience is often a misconception
For many people, using the same provider for electricity and gas is a matter of convenience – or so they think. From the outset it sounds ideal – one provider is sure to save time and money! However, convenience can be a misguided perception in the electricity and gas market.
Consumers will still receive separate bills for electricity and gas and on most occasions separate customer service. So apart from the same logo appearing on both bills, there is no difference in purchasing electricity and gas from different providers. In fact, retailers rely on and take advantage of this misconception of convenience when pricing their products.
Look beyond flashy deals
When using comparison websites, consumers should always compare electricity (only) deals first – usually the best gas offer is with one of the three big retailers. Look beyond flashy deals like introductory offers and focus on what the long term outcome will be.
Consumers should consider energy tariffs and pricing scales for the particular plan on offer before looking at any other discounts. It’s also important to look at the type of contract, any applicable fees and charges such as connection and disconnection fees, as well as special terms and conditions of benefit periods. If there is a time frame in place for receiving a special offer, chances are, it won’t be beneficial long term.
If you want to get the best value energy for your household, don’t get caught in the trap of thinking that getting your electricity and gas from the same provider will give you the best and most convenient outcome.
Like all contracts – it pays to read the fine print.
About the author
Domenic Capomolla is the founder and CEO of Sumo Power. Having worked in the energy industry for close to 20 years, Domenic is an expert on deregulated and contestable power and gas markets.