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Our team has put together this handy guide that looks at the different types of energy discounts and how they work.
Make sure you always read the “fine print” as all energy discounts are calculated differently. Some discounts apply to your whole bill and others just apply to the usage. So be sure to double check with your energy provider if the discount applies just to usage or if it applies to the entire bill. From here you can determine which one would save you more money long-term. Often an energy provider may provide a modest 10% to 15% discount but if it’s across your entire bill it may end up saving you more money than a 30% discount applied just to your usage.
Energy discounts usually stop after a certain period of time. This could be anywhere from 12 months to even up to two years. It’s always a good idea to make a note of when your discount ends. You’ll start to see your bills increase anyway once it ends. See if you can get a better one with your existing provider or shop around for other energy providers to see if you can get a better deal.
Pay on time discounts are the most common amongst energy providers. Some can be quite generous offering discounts of up to 30% off. They are an incentive to encourage you to pay on time. It’s a good idea to set up reminders or even direct debit to not miss the deadline. If you miss the deadline you miss the discount and may also be hit with a late payment fee. So always check the terms and conditions with your provider.
By setting up direct debit some providers will offer you a direct debit energy discount. Basically a percentage is taken off your energy bill to reward you for setting up direct debit and paying on time. At the end of each billing period, the total amount due is automatically taken out of your bank account and paid to your energy provider. Always ensure you have enough money in your nominated bank account to pay your bill. If not you may be charged a late payment fee and your bank may also charge you an overdrawn fee.
Some providers will offer you a discount if you bundle your gas and electricity services together on a plan with the one provider. Do your research and shop around to see if the ‘bundled discount’ actually saves you money in the long-term. It may not! In addition some providers also offer special deal energy discounts at certain times of the year. Again do your research to see if you’re actually saving money and shop around to see if you can get a better deal.
Increasingly in recent times more and more providers have been offering energy discounts if you sign up online rather than over the phone. Often the truth of the matter is that many energy companies want to save money themselves by having fewer sales staff on the phones. So again, just like with other discounts do your research to see if you’re actually saving money and shop around to see if you can get a better deal.
Do you think you may not be getting the right discount or none at all with your current energy provider? Speak to the team at Cheap Bills who can help you compare the best energy plans available on the market. Contact us today for more information.