How do I compare suppliers properly?

Providers compete on the number people compare, which is why introductory pricing is so common. Working out the total over the term reveals a different ranking, often a very different one.

What you'll need

• Your current contract (optional)
• Usage figures (optional)

Step by step

1. Find your actual usage first.Energy in kWh, broadband speed needed, mobile data used. Comparing packages without knowing your usage produces a meaningless answer.
2. Calculate the total cost over the full contract.Introductory price for its period plus the standard price for the remainder, plus any setup or exit fees. That is the comparable number.
3. Check what the price becomes after the introductory period.Often a substantial increase. A cheap first year followed by an expensive second is common and it is the point of the structure.
4. Check the contract length and exit terms.A long contract locks in a price and removes flexibility. Check what happens if you move house or want to leave early.
5. Check for price rise clauses.Many contracts allow annual increases regardless of the term. It changes the total cost and is usually in the small print rather than the headline.
6. Include the things that are not price.Service quality, coverage, customer service reputation. The cheapest supplier with poor service costs more in time and frustration.
7. Check more than one comparison source.Comparison sites do not include every provider, and some are paid by the companies listed. Check one or two direct providers as well.
8. Diarise the end date immediately.The moment you sign. Out-of-contract prices are usually far above what new customers pay, and the reminder is what prevents drifting onto them.

Tips

• Ask your existing provider what they can offer before switching. Retention offers are frequently better than the advertised new-customer price.
• For anything with a physical installation — broadband in particular — check the switch date and any gap in service before committing.
• Read the exit fee before signing rather than when you want to leave. It determines whether you have any flexibility at all.

Common mistakes

• Comparing headline monthly prices — They usually apply for a limited period. Total cost over the full contract can rank providers completely differently.
• Not checking the post-introductory price — It is often a substantial increase and it applies for most of the contract. It is the number that determines what you actually pay.
• Not diarising the contract end date — Out-of-contract prices are typically well above new-customer prices, and drifting onto them is how loyalty gets penalised.

Questions people ask