Julian, Managing Director of KidStart shares his views about the new Family Energy offer.
The Competitions and Markets Authority (the government organisation that promotes competition for the benefit of consumers) recently published a report into the energy market in the UK.
I was shocked to read that most households still get their gas / electricity on a standard variable tariff from one of the big six suppliers (ie: British Gas, EDF, Eon, Sottish power, Scottish & Southern and Npower) despite them being up to 30% more expensive. That is hundreds of pounds a year too much paid by the average family!
We did a bit of digging into why people don’t switch and found that for many the process seems complex, the choice bewildering and they worry about hidden catches in the “deals” they see. In particular, many fixed tariffs look like a good deal initially but might have fees for ending early and then go to higher rates if you forget to switch at the end of the contract.
We had a think about it and felt that the solution was to try to make life simpler for our members – after all we are all too busy with the day to day craziness of bringing up children and living our daily lives. We felt that if we could find an offer that is simple to switch to, is just great value and has no catches then our members would not need to think about it.
So we decided to team up with Octopus Energy to launch a “no-brainer” unique family energy offer designed especially for our members:
- – It will save you money: a typical household will save up to £300 per year by switching from a standard variable tariff on one of the big six suppliers*
- – It gives you money back for your kids: we will put 1% of your monthly gas/electricity bill into your child’s savings account
- – It is simple and easy to switch: Octopus Energy will take care of everything
- – It is green: Octopus Energy aim to use 50% green electricity sources as standard*
- – There are absolutely no catches: Octopus Energy’s low price variable tariff has no hidden charges, no exit fees and no minimum term.
Octopus Energy is, like KidStart, a smaller entrepreneurial company trying to help people. They have designed a really simple process to let you get a quote and then, if you decide to proceed, they take care of the switch for you.
The great thing is that Octopus Energy tariffs are straight good value and are some of the lowest in the market so you know you are getting a good deal. And if you find a better offer, you can always change as there are no minimum terms or exit fees.
I was one of those people who found it all a bit of a headache but I switched: it took me a minute or two to sort and I have saved well over £300.
^ * Savings based on publicly published standard variable tariffs for medium usage as defined by Ofgem, averaged across all regions including discounts for paperless billing and paying by monthly direct debit. Prices correct as of 10 June 2016
* Octopus also offer 100% green energy tariffs which will save you up to £170 per year