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Switching Energy Supplier – Are cashbacks better than a low tariff rate?

13th May 2019
2 minutes to read

Aodhan O'Donnell
Founder

More customers in Northern Ireland are choosing to switch electricity supplier. The market is competitive with suppliers offering cashbacks and rewards to help attract new customers. So when it comes to deciding between a tariff rate or cashback which is best?

Which suppliers are offering cashback?

Electric Ireland: provide £40 Switching Bonus for new credit (bill pay) customers and an extra £5 bonus for paying by direct debit and £5 bonus for receiving online bills. For Keypad tariffs they offer a £20 Switching Bonus and a further £20 Loyalty Bonus after 12 months.

SSE Airtricity: provide £55 Welcome Credit for customers signing up to their ‘1 Year Home Electricity tariff’ with online billing, payment by direct debit and a 6% discount off the standard rate. SSE also provide £5 Welcome Credit for customers signing up to their Keypad tariff which also comes with a 9% discount off the standard rate

Budget Energy: provide £15 welcome credit to new Keypad customers joining their Budget Bonus Discount tariff which has a 4.63% discount off the standard rate

Are cashback good value?

Upfront cashback offers are attractive and can encourage a customer to make the switch. In addition to cashback offers many suppliers will also provide a discount off their standard tariff rate  – for example Budget Energy provide 4.63% discount and SSE Airtricity 9%. However, it’s important to consider any cashback offer against your own personal energy use – to see how this can affect your savings lets compare SSE Airtricity ‘1 Year Home Electricity 15% Discount’ (no cashback) with SSE Airtricity ‘1 Year Home Electricity’ (£55 Welcome Credit).

Low Energy User (2,000 kWh per year) – the Discount tariff provides annual savings of £95.80. The Cashback offer saves £123.40 per year (Cashback Saving Wins +£27.60)

Medium Energy User (3,200 kWh per year) – the Discount tariff provides annual savings of £153.28. The Cashback offer saves £167.44 per year (Cashback Saving Wins +£14.16)

High Energy User (4,900 kWh per year) – the Discount tariff provides annual savings of £234.71. The Cashback offer saves £229.83 per year (Discount tariff Saving Wins +£4.88)

So, really deciding between a cashback or tariff rate really comes down to how much energy you use but also personal preference…some people just prefer to have cashbacks or credit added to their account.

Helping you decide….

Luckily www.powertoswitch.co.uk is here to help you decide. We have introduced a new feature which allows you to view results and compare savings by ‘tariff rate only’ or by ‘tariff rate + Cashback offers’. From the Results Page listing you can select which results to see (and move between results) so you can decide on what is the best offer for your home.

Simply ‘toggle’ between the ‘Sort: Tariff Rates‘ option displayed under the Savings column to see the difference cashbacks or tariff rates can make to your final energy bill. We only include cashbacks automatically made to your account within the first 12 months i.e offers thats don’t require you to take any additional action.


 

Choose a better deal

Power to Switch compares all electricity suppliers, tariffs and offers across Northern Ireland. And now with the option to view tariffs rates and cashbacks in the results page finding a better energy deal and saving money is easier than ever. Check if you can find a better electricity deal here

 

 

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