Seeing your energy bills rise without a clear explanation and feeling undervalued by your current energy supplier can be frustrating.
Most UK energy consumers, including renters, business owners, and homeowners, face the challenging decision of whether to switch energy suppliers, but knowing when to make the move can save you a significant amount of money and hassle.
Our guide is designed to help you recognize the signs that it’s time to consider a switch. Empower yourself with this knowledge you need to make an informed decision about your energy supply, ensuring you get the best deal possible while avoiding unnecessary stress.
What to look out for before Switching suppliers?
Intending to switch? But skeptical about where to start. Put the following into consideration before switching suppliers.
- How much does the new contract cost per month? You need to consider this to be sure it is within your energy budget and not have to default on your payment at any point. It is also important to compare it with your current energy cost to know if it’s worth it.
- Does it have an upfront payment? Different suppliers have varying terms they work with. Some supplier’s prepayment deals require you to pay a security deposit, while some demand an upfront payment of a month or two before your electricity or gas supplier.
- Does your tariff require a smart meter? Put this into consideration as some tariffs are only available to customers with smart meters or customers who are willing to fit one.
- Does your plan have an exit fee? Consider this if you eventually leave your supplier before the end of your contract, as some exit fees can be exorbitant. However, you won’t be charged if you switch suppliers during your 49-day notice period.
When should I Switch Energy Suppliers?
Switching energy suppliers can be difficult, but there are key indicators to help decide the right time to switch energy suppliers.
- At the end of a contract term
When your contract is coming to an end, it’s an indicator or opportunity to consider switching your supplier. Usually, at the end of a fixed-term contract, most suppliers automatically switch their customers to their standard variable rate, which is typically higher and less beneficial compared to fixed-term rates.
Maintaining an SVR(standard variable rate)contract can be a risky deal as it is known to change rates based on market fluctuations. That is, your energy rate could increase or decrease at any point.
The end of your contract with your supplier could also be the best time to switch suppliers, especially if you are looking for an opportunity for a better deal. The energy market is competitive, which means most suppliers offer discount deals or introductory offers to attract new customers. Plus, the ending of your contract is the right time to take advantage of those benefits.
Steps to follow when your contract is coming to an end
Unsure of how to go about it? These steps will guide you to terminate your contract at the end of your contract term. Follow these steps;
- Be sure of your contract end date: Ensure to keep track of your contract end date. While your supplier is obligated to inform you of the end of your contract 30-45 days prior, look out for your supplier’s notification about renewals or changes of rate.
- Review your current suppliers’ offers: Before switching suppliers, reach out to your suppliers to inquire about their current offers and other deals they can offer as retention. You can also negotiate with your supplier for a better deal.
- Compare contract plans with other suppliers: If you do not intend to renew your contract with your current supplier, compare offers with other suppliers by using our comparison tool. This tool will help you compare prices, contract terms, and other benefits. However, ensure the plans match your energy usage.
- Consider Timing: Plan your switch to tally with the end of your current contract to avoid termination fees. Don’t worry about the switch. Most suppliers will handle the switch without any service interaction.
- Price Increase
A price increase could also be a key factor in considering switching suppliers. Understanding this and knowing the important actions to take will help you when the situation arises. According to Ofgem data, “Customers on expensive, standard tariffs could save £325 by switching to the cheapest fixed deal.”
There are several ways in which your energy rate can influence switching suppliers.
- Affect monthly expenses: A price increase means an increase in the cost of energy no matter how small the hike could be. This also directly impacts the total household budget and affects other expenses in the long run.
- Supplier’s Practices: Some price hikes could be a result of market fluctuations indicating a further price increase. In other cases, price hikes could be part of a supplier’s strategy while relying on customer inertia(customer loyalty to the supplier out of convenience).
- Competitive Market: The energy market is competitive, leading to suppliers frequently adjusting their prices. Your current supplier may be hiking their price as a result of competitive prices offered by other suppliers.
- Quality of Service
This is when you are not getting the exact service quality your supplier promised you on your contract, then it is a significant reason to switch your supplier.
Why Quality of Service is an indicator to switch supplier
- Customer Support: Effective customer support is important for resolving issues quickly. Long wait times, unhelpful responses, or difficulty contacting support can be frustrating and indicate poor service. However, switching to another supplier means competent and knowledgeable support staff that are willing to resolve billing issues, service interruptions, or other problems you may encounter as a consumer.
- Billing Accuracy: Regularly receiving incorrect bills, unexplained charges, or billing disputes can be a major inconvenience to your energy supplier. Having such issues going on for a long time without a proper resolution is an indicator to switch your supplier.
- Transparency: Clear, easy-to-understand bills that transparently outline charges and usage are essential for maintaining trust and understanding your energy costs.
- Unreliable Supply: Frequent power outages or service disruptions can significantly impact daily life and productivity. Consistent and reliable energy supply is an important trait of a good energy provider.
- Moving between Houses
Moving between houses could also be a reason to switch your energy supplier, especially if your current supplier is not accessible in your new location. It also allows you to assess your energy usage and find ways to cut down on your energy bills.
Steps to take when moving between houses
- Notify Your Current Supplier: Inform your current supplier of your move at least 48 hours in advance. Provide your moving date and final meter reading to close your account accurately. Also, ensure all your outstanding bills are paid and confirm there are no exit fees if your contract ends due to moving.
- Research Your New Home’s Energy Setup: Identify the type of meter (standard, prepayment, smart meter) in your new home. This can influence your choice of supplier and the types of plans you opt for. Before opting for any plans, remember to assess the size of your new home, the number of occupants, and typical energy usage to determine the best type of energy plan. If it’s the same as your old home then you are good to go.
5. Compare Suppliers
Use energy comparison websites to explore the best deals in your new area. Compare rates, contract terms, and additional benefits like customer service and green energy options. Use reputable comparison websites to compare offers. Look at the unit rates, standing charges, and any exit fees. Be sure to read customer reviews on Trustpilot to ensure the reliability of the supplier you are opting for.
Contact your New Suppliers: Once you are sure about the supplier you opt for, contact potential suppliers directly. You can also request to with a representative as it can result in better energy rates.
Switching Process: Make sure your switching process is complete by the time you move into your new home. Most suppliers handle the switch seamlessly without any interruption to your energy supply. Once you have chosen your new supplier, they will handle the switch for you, including notifying your current supplier. Take meter readings on the day you move out and move into your new home to ensure accurate billing. The whole process usually takes about 21 days, with no disruption to your energy supply, as confirmed by Ofgem’s License Guide.
Review Your First Bills: Check your first bills from the new supplier to ensure the rates and charges match what was agreed upon. Keep an eye on your energy usage and costs in the first few months to ensure the plan you chose is indeed the best fit for your new home.
5. Repaying a Debt
If you owe your supplier at any point, you will not be allowed to switch unless you clear off your debt or your debt is less than 28 days. Once you have them cleared, shop around for cheaper tariffs to maintain your energy bill payment and explore ways you could reduce your energy usage. If you find it hard to pay your energy bills, you can explore some government energy schemes.
You can switch your supplier while repaying a debt for;
- Prepayment Meter Restrictions: Switching suppliers can be necessary if you are repaying a debt via a prepayment meter. Prepayment meters often have higher rates, and staying on them due to debt can lead to higher costs in the long run.
- Debt Repayment Plans: When you owe money to your current supplier, they might allow you to switch to another supplier as part of a debt repayment plan. This is especially relevant if the debt is under a certain amount (usually £500 for gas and £500 for electricity) and you are on a prepayment meter.
- Access to Better Rates: Switching suppliers can provide access to better rates and repayment plans. New suppliers might offer more competitive tariffs or debt management options that could reduce your overall financial burden.
Benefits of switching while repaying debt
- Lower Costs: Access to more affordable tariffs can significantly reduce your energy expenses.
- Flexible Repayment: New suppliers may offer better debt management programs.
- Improved Service: Enhanced customer service and support from a new supplier can make managing your energy bills easier
What you need to switch your energy supplier
For a smooth transition from one supplier to another, here is some key information you need to put in place. The more detailed it is, the faster your switching process.
- Your Address: It is important to add your full address because the energy price verifies depending on the location. This will ensure your quote is for your home. With your address, include your full name, Email address, and phone number for communication purposes.
- Your current energy bill: This will give your overall gas and electricity usage for the past year. For detailed information, follow this list;
- Meter reading: This includes the details of your energy consumption in kilowatt-hr(kWh) over a specific period of time. You can get accurate information from your meter reading; this could be months or years. This ensures your final bill from your current supplier is accurate and your new supplier starts with the correct readings.
- Account Number: Your current account number with your existing supplier.
- Tariff Details: Information about your current tariff, including the name of the tariff and the rates you are being charged.
- Payment Details: Bank account details if you plan to pay by direct debit. This includes your bank account number and sort code.
Steps to Switch Energy Suppliers
Switching energy suppliers can be a straightforward process if you follow these steps. Here’s a detailed guide on how to switch your energy supplier:
- Review Your Current Energy Usage and Contract
Understand the terms of your current contract, including the end date, exit fees, and the type of rate (fixed or variable). You should also review your past energy bills to understand your energy consumption. This will help you compare offers with other suppliers. To do this, Start by examining the breakdown of your current energy bill. Look for the unit rate, standing charges, and any additional fees. If your bill has increased significantly, compare it with previous months to identify any unusual spikes. According to Ofgem, “Understanding these components can help you spot hidden charges and inefficiencies.”
- Compare Energy Suppliers
Check out various websites to compare rates, and you can also make use of our comparison tool to compare rates from different suppliers based on your postcode and usage. While comparing suppliers, look out for suppliers that offer green tariffs.
- Contact your New Supplier
Once you have decided on the new supplier you want to opt for, you can sign up through their website or reach out by calling their customer service. Before preparing prepare necessary information, you may have to submit it. This includes your name, address, current supplier, meter readings, and bank details for direct debit setup.
- Allow your Switching Process to Complete
After the switching process, there is usually a 14-day cooling-off period during which you can decide to change your mind without any fee or penalty.
- Confirm your Switch
Your old supplier will send a final bill. Make sure it tallies with your energy consumption up to the switch date. To be on the safer side, once your supplier starts billing you, check the first bill to be sure of the accuracy.
Conclusion
Deciding to switch energy suppliers can be challenging, but ensuring you will get the best deal and service is necessary. Key indicators such as the end of your contract term, unexpected price increases, moving home or business, and managing debt repayments should prompt you to consider a switch. You can achieve significant savings, better customer service, and more favourable terms by staying informed and taking proactive steps.
