Comparison Websites May Not Be the Best Way to Compare Gas and Electricity Prices   by Paul D. Brown

in Finance / PersonalFinance    (submitted 2011-02-09)

As money gets tighter and budgets get squeezed, more and more people are looking to compare gas and electricity prices. The first port of call seems to be the price comparison website, but this should not be the *only* way you make your comparisons...

It makes perfect sense to compare gas and electricity prices - you may not save anything, but in all probability you will make a saving. Since some expenses cannot be reduced, it is sensible to take advantage of any expenses that can be reduced, and energy can be a big one.

Before I go into another, possibly more rewarding way to compare the prices, let's look at those price comparison websites...

They are easy to find, heavily advertised, and offer a simple way to see if you can make savings on your energy. You enter your postcode and a few other details - things like the amount of fuel you use, previous bills, and maybe equipment in your home.

Then you hit the button and you get a display of the options from various companies. All well and good, but since the whole point of the exercise is to save as much as you can, there is something else you can do before signing up to the cheapest option displayed...

Ring all of the companies listed!

This includes your current supplier. If they were to lose you as a customer, it will cost them to find a new customer to replace you, so they will be prepared to go to surprising lengths to keep you. If you tell them you are making comparisons to see if you can reduce your bills, they will give you their best offer. It may be that by paying by direct debit or switching from paper bills to online accounting could be simple steps to reduce your bill.

When you ring the other companies, do not tell them you have visited a price comparison site, or they will use that price as their offer. If you simply tell them you are using the phone call as a way to compare prices, you are again opening up the potential for offers which may not show up on the comparison sites.
Make sure you let them know you are contacting all the other companies, and be honest and upfront about the figures.

Don't try to kid or lie to them, you are playing them off against one another quite enough by doing it honestly.
Also do not forget to go to your local phone book. There may be a smaller local company that is not on the big websites, and it would be worth getting their prices too.

One thing to remember when ringing the companies is not to accept what they offer you there and then. Their phone staff will be highly trained, and will try and steer you towards accepting their offer, often using a 'today only' closing tactic. Don't fall for it, and let them know it too! If you are firm with them about you making genuine comparisons, you will end up with their genuine prices, but be prepared to listen to some sales techniques in action.

In truth, it may end up that a deal you see on a website comparing companies is the best deal, but do not assume it from the start. Pick up the phone and use the old fashioned method as well, and you may save even more than you expected.

About the Author

To learn more about comparing gas and electricity, please visit us at: http://comparegasandelectricitypricessite.com/. For another informative article on the subject, please go to: http://ezinearticles.com/?Things-to-Look-for-With-Gas-and-Electricity-Suppliers&id=5838965 Hope this will help you in the never ending quest to save money