Loyalty doesn’t get you anywhere when it comes to energy providers. Constant price hikes means you need to be shopping around frequently to make sure you’re not overpaying for your energy.
Up until very recently (yesterday) I was with Igloo Energy. Periodically I run checks to see if there’s a cheaper provider and for a while there hasn’t been.
And then I got an email saying the price was going up by 11%.
£50 Credit When Joining
I’ve been aware of the joining fees that energy providers pay for new customers for a while. Igloo themselves offer one, as do Octopus, ESB, Bulb and probably a few others.
And so my cunning plan is formed.
- Find energy supplier offering a welcome bonus
- Join them for a short period of time
- Ditch and switch for a new supplier offering a welcome bonus
There are a few things that you need to check any potential new supplier for if you’re going to adopt this strategy.
What You Need To Check New Energy Suppliers For
Make sure the new supplier’s energy prices aren’t sky high. There’s little point in a £50 joining fee if you’ll burn through it from higher energy prices in a few months. Use a comparison service to check this.
Check for exit fees. You need to make sure that you can move on from your new supplier without any penalties. This means that you’re free to take a new deal when it suits you. This is usually part of the terms and conditions but many energy comparison sites pull this out for you.
And so I joined Octopus Energy.
There prices were in line with the new prices I would have been paying with Igloo, the contract is fixed for 2 years and I can leave without any exit fees. This is perfect for my switch and ditch strategy.
How Much Can You Make From Energy Switch And Ditch?
The better deals are paying new customers £50 for joining. I’m anticipating making 4 changes to my energy provider a year (assuming I can find supplier that match the conditions above).
This will reduce my energy bills by £200/year. Roughly 20% of my annual energy bill.
I figure that changing 4 times a year isn’t too much. Any more frequently might be just a little too much hassle.
How To Find Energy Switch Deals
So now we need to know how to find energy switching deals.
Let me start by giving you my Octopus Energy referral link which will get both of us £50 in credit.
Great but that’s only one.
Usually these deals are almost always refer a friend type deals, so you need to find a current customer in order to get the bonus.
My preferred strategy is searching Reddit (you don’t need an account) and using one of the following terms:
You shouldn’t have to dig too far with those search terms to find a customer with a link that will grab you the deal.