Switching energy suppliers could be a smart way to reduce your monthly energy bills and enjoy better customer service with consideration to access green energy options. However, with the competition going on in the energy market, Ofgem discovered that switching energy suppliers has helped many households save costs especially when they are faced with the rising cost of energy. For example, the cost difference between standard variable tariffs and fixed-rate deals can be on the high side and eventually lead to an increased cost saving on energy prices by the end of the year.
Other than saving costs, switching energy suppliers could also mean you get to access a better energy supplier service, such as quicker response times and more efficient billing systems. You may also want to switch to take advantage of products like smart meters and digital apps that give you more control over your energy usage.
But keep in mind that whatever your reason for a switch, switching suppliers is one of the best methods to enhance your overall energy experience.
Why you should consider switching suppliers?
Switching energy suppliers could be a beneficial process for many reasons. Here are some reasons you should consider switching suppliers.
- Cost Saving: The most common reason why consumers switch suppliers is to save costs. By switching to a new supplier, or opting for a fixed-rate deal, you get to save thousands of pounds per year on your energy bill. But if you are doubtful because you have switched suppliers in the past, you can check the market regularly to help you stay on top of new deals and avoid price hikes.
- Access better Customer Service: If you are one of the energy users who always have to deal with slow customer service, billing issues, or unhelpful responses. Then switching suppliers could be your shot at better customer service. While it doesn’t indicate your problems with your supplier automatically being solved, it means you don’t have to deal with such going forward. Also, many energy users report improved customer experiences after switching to a supplier known for great customer service.
- Gain more control over your Energy Tariff: By switching suppliers, you can gain control over your energy plan. Various tariffs offer different perks; A fixed rate tariff protects you from sudden price increases while variable tariffs offer lower rates when market prices drop. You can also access dual fuel deals with some suppliers. Using smart meters and mobile apps can help you monitor usage and manage your bills more effectively.
- Avoid price Increases: With the frequent increase in energy prices, maintaining standard tariffs can mean you are paying more than necessary. However, by switching before your contract ends or as soon as you notice the price increase, you get to secure a better deal and avoid unexpected costs. Switching suppliers also means you can take advantage of introductory offers for new customers which is usually lower than what existing customers pay.
What do you need to switch Energy Suppliers?
Switching energy suppliers is a straightforward process if you have the right information. Here are what you need to switch suppliers.
- Current energy bill: A current energy bill will provide you with essential details like tariff type, energy usage, and account number. These will help you compare new deals accurately and ensure you are stitching with the right information.
- Meter Reading: This will provide you with accurate readings for a smoother transition. It will also prevent any inconsistencies when you receive your final bill from your old supplier.
- Postcode: You need to provide your postcode when searching for deals, as energy prices and options can vary depending on your location. Some suppliers may not operate in certain areas, so with your postcode, you can use it to filter for relevant offers.
- Current Tariff details: You need to know the information on your tariff and its end date. For example, if you are on a fixed-rate plan, switching before your end date means (ready to incur an exit fee). But you can get this fee waived if you are within the last 49 days of your contract (this period is known as the “switching period”).
- Payment Information: Knowing your payment information means your new tariff is set up without delays and you can start paying your new rates immediately.
When is the Best time to Switch Energy Suppliers?
The best time to switch your energy supplier depends on your contract type, seasonal price changes and any other factor that could affect your switching process. Here are the best times to switch energy suppliers.
- At the end of your current contract: You can easily switch suppliers when your fixed-term contract expires, that way you can exit your contract without incurring exit fees. Usually, at the end of your fixed contract, suppliers automatically move you to a standard variable tariff so switching at this point will help you secure a better energy rate.
- Within 49-day Window: In the UK, Ofgem regulations allow you to switch up to 49 days before the end of your contract without incurring charges.
- When moving to a new home: When moving homes is also a good time to switch suppliers, as the default tariff at your new home may not off the best value so checking and switching immediately could help avoid overpaying on your new bill.
- Before Winter: The winter period is known for an increased demand in energy consumption which also means a higher energy bill. Energy providers offer competitive rates during autumn to attract new customers before winter. You can take advantage of this period and look for a better energy tariff deal to minimise your bill rather than incurring a higher bill.
- During market change or price increase: If you notice energy prices are on the rise, switching suppliers could be a good decision to save yourself from future price increases. So you may want to look out for any economic shifts or announcements from major suppliers.
Step-by-Step to Switching Energy Suppliers
Switching energy suppliers is an alternative process to reduce your bills, access better services, or find greener energy options. Here’s a step-by-step process to switch your energy suppliers.
- Find out the necessary information
Before you start comparing deals, ensure you have the following key details:
- Recent Energy Bill: This provides essential information like your current tariff, energy consumption, and rates. Look for a summary of your annual usage in kilowatt-hours (kWh), as this helps comparison websites give you the most accurate quotes.
- Supplier and Tariff Details: Note the name of your current supplier and the tariff you are on. Knowing whether you are on a fixed or variable plan will help in finding the best switch options.
- Contract End Date and Exit Fees: If you are on a fixed-term contract, check for any early exit fees. Many suppliers allow you to switch without incurring charges during the last 49 days of your contract period.
- Energy Usage Data: Accurate usage information is crucial for getting precise quotes. You can find your yearly consumption on your bill, usually listed as an estimate based on your past usage.
- Use the Energy Comparison Tool
You can make use of the Docalla comparison tool to help you find the best deals tailored to your needs:
To use our comparison tool, enter your energy details, including your current usage, postcode, and supplier information. Our comparison will then display a list of tariffs available in your area.
Using this, and also providing access to accurate data from your recent bill will lead to more reliable quotes. Some comparison tools also highlight green energy tariffs, which may be preferable if you are looking to reduce your carbon footprint.
- Compare Different Tariffs
All energy tariffs available do not offer equal rates or perks. So here are what to look out for in a typical energy tariff;
- Fixed vs. Variable Tariffs: Fixed-rate tariffs lock in a price per unit of energy for a set period (usually 12-24 months), protecting you from market fluctuations. Variable-rate tariffs can change with the market, which might be beneficial if prices drop, but you could end up paying more if prices increase.
- Unit Rates and Standing Charges: Pay attention to the unit rate (cost per kWh) and the standing charge (a daily fee for being connected to the grid). A lower unit rate with a high-standing charge might be ideal for heavy users, while low-usage households might prefer a plan with a higher unit rate but a lower standing charge.
- Additional Benefits: Some tariffs come with perks like cashback, discounts for direct debit payments, or green energy options. Weigh these extras against potential savings.
- Check for suppliers’ Reviews and Ratings
Switching to a cheaper tariff isn’t beneficial if the new supplier has poor customer service. Here’s what to look out for in your supplier;
- Look at Online Reviews: Websites like Trustpilot, Which?, and Google Reviews provide customer feedback on various energy suppliers. Consider factors like billing accuracy, customer support responsiveness, and how the suppliers handles complaints.
- Industry Ratings: Check industry ratings from sources like Ofgem’s complaints data and customer satisfaction surveys. These ratings will give you a sense of how reliable and user-friendly a supplier is.
- Contact your new supplier to initiate the switch
Once you have chosen your new tariff, it’s time to make the switch:
- Provide Necessary Details: You will need to give your new supplier your personal details (name, address) and energy information (current supplier, tariff, usage).
- Cooling-Off Period: You have a 14-day cooling-off period after initiating the switch. This allows you to cancel without any penalty if you change your mind during this time.
- What Happens Next: Your new supplier will handle the switch process, including notifying your old supplier. The transition typically takes about 21 days, and you will experience no disruption in your energy supply during this time.
- Finalize your switching process
After the switch is complete:
- Submit a Final Meter Reading: Your new supplier will ask for a meter reading to ensure accurate billing. This reading will be shared with your old supplier for the final bill.
- Check Your Final Bill: Review your final bill from the old supplier to ensure everything is correct. Pay any outstanding balance or ask for a refund if you were overcharged or had a credit balance.
- Monitor Your New Account: Set up an online account with your new supplier to track your usage and billing. Regular monitoring helps you catch any discrepancies early on.
How long does the Switching Process take?
Switching energy suppliers takes around 15 to 21 days from the time you initiate the switch. This period includes a mandatory 14-day cooling-off period, during which you can change your mind and cancel the switch without facing any penalties.
- Cooling-Off Period (14 Days): As required by regulations, the process starts with a cooling-off period. This allows you to reconsider your decision and cancel the switch if needed.
- Switch Completion (1 to 7 Days): After the cooling-off period ends, the new supplier takes about a week to complete the transfer of your energy account. During this time, you will not experience any interruptions in your energy supply.
Conclusion
Switching energy suppliers is a smart move for anyone looking to save money, access better services, or choose greener energy options. By following the step-by-step guide provided, you can simplify the switching process. The entire process typically takes 15 to 21 days, including a cooling-off period, and is designed to be hassle-free with no disruption to your energy supply.
In conclusion, if you are unhappy with your current provider or want to explore better deals, now is a great time to switch. By regularly reviewing your energy plan, you can maximize your savings and ensure you are always getting the best service possible.
