Give your finances an autumn makeover

With the summer holidays over and autumn on the horizon, it's time to take stock of your financial situation before the winter sets in. While you have been on holiday, there have been developments in the energy markets. Act now to make sure you are ready for the next few months.


Get a better energy deal


Your monthly direct debits for gas and electricity might remain constant over a 12-month period, but it stands to reason that most of our energy is used in the colder months. Now is a good time to switch your energy because you are more likely to be in credit with your energy company after the summer, and won't have to pay a huge bill if you switch.


Five of the big six energy suppliers in the UK have recently raised their prices, although the last, EDF, has yet to follow suit. Experts are divided on whether suppliers may have to bring prices down again in the coming months, because wholesale prices have fallen, meaning that fixed rate energy deals look less attractive than they once did.


Unless you are ultra-cautious, it may make sense simply to find the cheapest deal you can, knowing that you can get out of it if prices fall, rather than taking out a fixed rate deal with penalties for moving during a fixed term.


"With wholesale prices now falling there is a chance that we could see household energy prices remaining steady or even falling in the future," says Thomas Lyon at uSwitch. "Therefore the decision to fix isn't quite as clear cut as it was a few months ago."


Whether you choose to fix or not, the cheapest deal you can get is likely to be an online deal. Generally you will pay less if you offer to pay by Direct Debit, and if you choose to take gas and electricity from the same supplier (a dual fuel deal). 


Accredited switching sites such as uSwitch, Moneysupermarket and EnergyHelpline will be able to help you find the cheapest deal, depending on where you are in the country.


06.09.2011 - Telegraph


Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!