Why the cheapest energy supplier isn't always the cheapest

Why the cheapest energy supplier isn't always the cheapest

On the 4th February, British Gas cut its gas prices by 7% , which made its WebSaver 6 online tariff and standard tariffs the cheapest gas and electricity plans of their kind. Understandably, British Gas publicised this, with adverts on TV, online and in print bearing the slogan 'the cheapest supplier of standard gas and electricity'.

However, just a few weeks later, the crown of cheapest supplier was snatched by First:Utility, a relatively small energy company whose online and standard tariffs are now £10 and £8 cheaper respectively than those from British Gas.

Less than a week after that, Scottish and Southern Energy cut its gas prices by 4% for dual fuel customers, 7% for single fuel customers and 9% for those on pre-payment tariffs, with effect from March 29th 2010.

But just how important is it to be with the energy company that holds the title of the cheapest gas and electricity supplier? The answer is 'not very'. The claim to have the lowest prices is based on an average user and the problem with that is that not everyone is average.

If you go on energy comparison sites  like uSwitch today, you may well find that neither British Gas, First:Utility or Scottish and Southern Energy is the cheapest for you - and this isn't because we've got our numbers wrong.

The cheapest gas and electricity supplier for you depends on several different factors - most significantly where you live and how much energy you use. Some gas and electricity plans may not be available in your area, or the rates may be different because of where you live. Usage also has an impact, for example plans that have a standing charge and a lower cost per unit of gas and electricity might work out to be cheap for someone who uses a lot of electricity, but very expensive for someone who uses very little.

The only way to be sure you're getting the best deal is to do a full comparison of the whole energy market. When you compare gas and electricity with uSwitch, we give you a personalised quote, based on where you live and how much energy you use, so you'll be know which plan is cheapest for you personally.