DITCH 'N' SWITCH

THIS is an urgent warning to the huge number of people who grabbed a capped gas and electricity tariff a year ago . . . many are about to end, so swift action is needed to avoid bills jumping by £100s.

Last summer was cap central, as hordes selected these tariffs which lock-you in to fixed rates just ahead of MASSIVE price hikes (see Was Capping Worthwhile below).

Now many including some from Scottish Power, British Gas and E.On will soon end.

So what happens when caps end?

The price protection vanishes and you're usually shifted to your provider's standard tariff.

This is normally uncompetitive and leaves you with bills possibly £100s higher.

Your provider may offer another cap or cheaper tariff, yet it's always better to compare cross market to ensure the best deal.

STEP 1

Find the cap facts

Each cap differs, so don't start switching before checking the following:

Get your cap's precise name. Confusion is rife, suppliers have many caps with TINY name differences. For example, E.on has FIVE "Price Protection October 2009" tariffs where the rate depends exactly when you got it.

Check for exit penalties. Most charge £30 - £75 fees if you leave while the cap is in place. If so, hold the switch until a couple of weeks before the cap ends to avoid it. If not, as switching take a couple of months to process, it's worth doing it earlier.

Find your 'go-to' tariff. If possible, ask your provider what tariff you'll move to when your cap ends.

STEP 2

Compare, then

ditch 'n' switch

Frustratingly most comparison sites compare using your current tariff, ie the rate of the cap when more important is the rate it goes to when the cap ends.

Having nagged switching site energyhelpline on this, it has introduced a system that works this way, with others it's best to first find your go to tariff and enter it to compare.

Go to these via www. moneysavingexpert.com/capswitch to get cashback on top.

FURTHER QUICK TIPS

Want Green energy? Comparison sites let you compare green tariffs.

Pay by Monthly Direct Debit. It is roughly 10 per cent cheaper, but always do meter readings: Never rely on estimated bills.

Check social tariffs. Suffering financial hardship? Your provider may offer a special social tariff.

Should I cap again? Caps give you security against rate rises, but cost roughly 10 per cent more than the cheapest standard tariffs.

Currently industry experts believe prices are due to drop slightly by the end of the year, making caps less attractive right now.

I'm on a long-term cap? If your cap has years left, it is still worth comparing to look for savings, though factor in exit penalties.

Some who capped ages ago have amazingly good deals and should stick.

Yet some, especially post July 2008 cappers, may have locked in at expensive rates.

If so, it may be worth leaving and paying the exit penalty, though you're giving up price security to do so.

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