How to switch your energy provider or tariff
Households across Britain have seen huge increases to their energy bills in the past few years, with little reason to switch providers.
However, it’s now becoming a more worthwhile prospect. Not only have we found there can be big differences in energy providers’ levels of customer service, some are now offering deals that could be worth considering.
What might seem a complicated task can often be completed in just a few days, and it takes little involvement on your part.
In fact, all you’ll need is your postcode, the name of your current energy supplier and what tariff you are on to investigate whether switching makes financial sense for you.
Whether you are on a fixed tariff or variable deal, have a smart meter or not, Telegraph Money explains the process of how you can switch energy providers.
When is the best time to switch suppliers?
If you are on a fixed tariff, the best time to switch suppliers is right at the end of your contract – switching before the contract ends usually means having to pay an exit fee, which can outweigh the savings you’d make from moving to a cheaper deal elsewhere.
If you don’t switch elsewhere, or sign up to an alternative fixed tariff when your deal ends, your provider will usually move you to its standard variable tariff.
When it comes to choosing a new fixed rate tariff, experts have warned consumers to be wary – the energy price cap is expected to fall throughout this year, which means there could be a danger of finding yourself stuck on a fixed deal that’s more expensive than variable tariffs.
The energy price cap is the maximum amount suppliers can charge you for a unit of energy if you are on a standard variable tariff. The cap is currently set at ￡1,690 and is updated every three months, with analysts expecting the cap to fall further throughout 2024.
In February, experts estimated households that switched to a fixed tariff would be more than ￡200 worse off by the end of the year if forecasts for the energy price cap proved correct.
First, check if you can switch
It’s important to understand how you pay for your energy to work out whether or not switching is a good idea.
If you are on a standard variable tariff, which means your rate goes up and down depending on the wholesale price of energy, you should have total flexibility to switch whenever you like.
While you are exposed to the market fluctuation of energy prices, you can walk away from your provider without paying an exit fee.
However, if you’re on a fixed tariff you may be charged an exit fee if you decide to switch providers before the end of your contract. It is worth finding your most recent statement to understand your contract length and when the end date is.
Check that your meter will still work
Some customers with smart meters that were installed before 2018 have encountered issues when switching providers.
These first generation models use different networks to send readings to suppliers. As a result, some have been known to lose their functionality and go into “dumb” mode when switching.
This won’t always happen, but if it does then rest assured that suppliers are legally required to fix or replace broken smart meters for free under a scheme put in place by Ofgem earlier this year. The devices previously only had a one-year warranty.
If you have recently had a smart meter installed, switching providers is likely to be smooth; second generation models, known as SMETS2, can update your display remotely meaning the process should be seamless when switching.
If you have a traditional gas meter you should still be able to switch to a new provider without getting it changed – but you may not be able to access some of the cheaper tariffs in cases where they’re only offered to those with smart meters.
It’s likely that your new provider will offer you a smart meter, but you don’t have to accept it if you don’t want one.
Contact your new energy provider
If you’ve found a deal that suits you, or a provider you’d prefer to use, you don’t need to contact your existing energy supplier to get the switch started.
Instead, simply contact your new provider either over the phone or by going directly to its website. You’ll need to hand: your postcode, the name of your current energy supplier, what tariff you are currently on and your annual energy usage (you’ll find this on your annual statement from your supplier).
Your new provider will then begin the switching process.
It will also cancel your existing contract and should mean there is no interruption in the flow of electricity or gas to your property.
What happens if there is a delay?
Ofgem introduced new compensation rules for switching energy suppliers in April 2024. They stipulate that suppliers must switch your electricity or gas supply within five working days. If your new supplier fails to do this, they must automatically pay you ￡30 in compensation, which will be paid either directly to your bank account or into your energy account.
You are also entitled to ￡30 compensation if:
Your new supplier takes more than 20 working days to reply to you after telling them about a switching mistake
Your old and new suppliers take more than 20 working days to agree whether the switch was carried out correctly – in this case they both pay you ￡30
Your old supplier takes more than 21 working days to re-register your supply once being made aware of any mistake
If you haven’t received the compensation you think you’re owed, you can make a complaint to your provider. They should attempt to resolve the problem within eight weeks – if they fail to do this, or you’re unhappy with the outcome, then you can escalate your complaint to the Energy Ombudsman.
Sign up to switching alerts for the best deal
With lots of energy suppliers to choose from, staying on top of the best offers can be incredibly time consuming. Luckily, there are numerous comparison websites which will notify you when a better deal becomes available.
All you have to do is provide your postcode and some details about your current tariff and then the comparison site will email you when a better deal is on offer.
Note that this service is only available for fixed-term tariffs. As mentioned above, you should consider the impact of further energy price cap changes before you sign up to a fixed deal in order to make sure you don’t end up paying over the odds.
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