How to switch your energy provider Energy companies claim they cannot afford to cut the price of both domestic fuels, despite falling wholesale prices. They say this is because fixed costs, such as transportation and government levies, have also risen, restricting the ability to cut prices further. In addition, companies such as British Gas buy fuel in advance, so much of their current stock has been bought at higher wholesale prices. But consumer groups have called for them to do more, noting that when prices rose all suppliers increased the cost of both fuels. It's notable that companies such as British Gas, which has twice as many gas customers, have cut electricity prices, while EDF and SSE, with more electricity customers, are reducing only gas tariffs. Not much. Suppliers increased their prices by an average of £224 per household during 2011, but will now reduce bills by an average of just £34. Ann Robinson, the director of consumer policy at uSwitch.com, said: "These cuts in energy prices [are] a drop in the ocean to cash-strapped consumers, when compared with the price hikes seen since the end of 2010." The cost of energy has become a major household worry and these single-digit price cuts will do little to change that. Affordability looks set to remain a concern. British Gas has cut prices with immediate effect. Most of its rivals are introducing them over the next month, with SSE not introducing the changes until the end of March, so people will pay the higher rate during the winter months. For most consumers the savings you can make for switching far outweigh the rather measly reduction being offered by the utility companies. Once the cuts come into effect, the typical household will pay £1,350 a year on a standard tariff. The cheapest online tariff, though, charges just £1,030 for the same usage, taking £320 off your annual bill. Only 5m people switch suppliers each year, although many of these will be repeat switchers. More than half of all consumers have never switched suppliers and will be paying over the odds as a result. For an accurate comparison you will need details of your current suppliers, the name of the tariff and details of how much energy you consume - in kilowatt hours (kWh) or as a monthly or quarterly spend. If you are not on the internet, you need not rely on a dodgy doorstep seller to get the cheapest tariff. The comparison site uSwitch.com has launched a postal service: customers send in their bills, and an adviser calls back to talk through their options. Call 0800 093 0607 for more details. Before switching check there is no cancellation fee. These are more common on fixed or online tariffs, and usually apply for a set period (typically 18 months). Clear any outstanding bills with your existing provider, as you may not be able to switch if you are in arrears. Take a meter reading on the day of the switchover to ensure you are billed correctly. Most suppliers offer dual-fuel discounts, making them more competitively priced than buying separately. For example, for the average household British Gas would charge £446 for electricity, while EDF would charge £676 for gas - the cheapest stand-alone deals. Combined, this would cost £1,122, but this is still almost £40 more expensive than comparable dual-fuel deals. No one provider offers the cheapest energy deals across the board. Much will depend on where you live and your energy usage. According to Moneysupermarket.com, some of the most competitive deals at present are from First Utility. Its iSave v9 plan costs an average of £1,030 a year, while Scottish Power charges £1,086 for its Online Energy Saver 17 tariff. Some consumers prefer to opt for fixed-rate deals to protect themselves against rising prices. But consumers will pay a premium for this peace of mind. There is, of course, no guarantee that fixing will be best for the long term, as prices could fall during the period. The most competitive fixed-rate deals include Ovo Energy's New Energy Fixed, which costs £1,059 annually, or npower's Go Fix 10 tariff, which costs about £1,078 a year - savings of £291 and £272 respectively on standard tariffs. Consumers can make further savings by signing up to a cashback website. Quidco.com currently pays £30 to those switching to npower and £42 to Scottish Power. As with online retailers, the cheapest energy deal is invariably on the internet. Many providers offer discounts for buying online as their overheads are greatly reduced. People don't get paper bills in the post, and need to update their meter readings online. If you have never switched, choosing one of these will save you the most money, usually about £160 a year from standard tariffs. Paying by a fixed monthly direct debit based on the supplier's estimate can cut your bill by 10pc, saving you more than £100 a year. This is because the energy companies are sure you will not default and they earn interest on any overpayments. However, those paying by this method should make sure they update meter readings regularly to ensure they are not paying over the odds and building a significant surplus on their account. Remember it is normal for there to be a surplus in the summer months to cover higher bills in the winter. Usually between four and six weeks. After you sign up you will receive a letter from your new supplier notifying you when the switch will happen. Your old supplier will send you your final bill and once this is paid you will receive bills from the new supplier.