Consumers are wasting a collective £3.6billion by sticking with their default provider and could each save an average £346 a year if they switch providers to get the best deal.

Research from moneysupermarket.com has highlighted the difference in cost between energy providers’ standard tariffs and the best gas and electricity plans available on the market.

Each consumer could cut 29 per cent off their annual energy bills, the comparison website has calculated, if they simply compare prices and switch energy provider to get the cheapest tariff.

Consumers’ loyalty to their regional provider is a costly partnership, the research discovered, and if everyone currently on their local supplier’s tariff moved to the cheapest online energy plan they could save a total £3.6billion.

Further research from moneysupermarket has found that the cheapest provider at the moment is OVO Energy, following a price this week which has not only rivalled but beaten those from the Big Six energy providers in the last few months, to make it the cheapest dual fuel provider in all 14 regions of the UK.

Scott Byrom, utilities manager at moneysupermarket.com, said: “After the cold winter snap we’ve experienced, an average decrease of six per cent to the cost of gas – and no reductions to the cost of electricity – has simply been a big disappointment to bill payers.

“Unfortunately, languishing on your incumbent providers’ standard deals wont be rewarded either, but will ensure Brits continue to pay through the nose for their gas and electricity.”

Mr Byrom urges consumers not to sit on their current tariff, but to be proactive and reduce their energy bills, especially those who have not switched since the most recent round of price cuts, and even more so for those who have never switched energy provider.

© Fair Investment Company Ltd