How to Switch your Energy Supplier

By Julia Kukiewicz Staff Writer Thursday, 9 April 2009

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DESPITE the fluctuating price of oil energy prices have been rising steadily over the past few years.

Despite this, however, a surprising number of us never make the decision to switch supplier or deal. We are put off by horror stories about the complicated process, believe that we won't save substantial amounts by switching or simply feel that we are unable to understand the different tariffs on offer.

These points of view are all understandable but they are also easily fixed. Just read our simple guide to find out how much you could save by switching your energy supplier and how to do it step-by-step.

Is it worth the hassle?

As you've probably already guessed we think that it’s often worth the hassle of switching your energy supplier.

Energy is energy and, unless you are particularly concerned about customer service, there aren't really any pros and cons to weigh up: it all comes down to the price and it's often too high.

According to figures from Money Saving Expert the average London family who haven't switched before could save just under £500 a year by switching to the cheapest deal.

Since energy companies tend to follow each other and when it's reported in the news they tend to be spoken about as a group, it can often seem that switching would just mean moving from six of one to half a dozen of the other.

It's true that there is an optimum time to switch your energy supplier - when all of the major energy companies have recently announced price changes - but as those earlier figures show price fluctuations and different deals for different types of users do exist all the time.

Whatever you do, make sure that you compare prices and deals before making your decision and don't switch after talking to a cold caller. Phone and doorstep cold calling for energy suppliers is becoming as ubiquitous as cold calling for double glazing and it's often an unscrupulous business.

Saving without Switching

Whether or not you decide to switch your energy supplier you should always try and save money with these simple tips. Energy companies thrive on people not making the small changes which rapidly add up to increase their bills.

• Get online billing - it's always cheaper to avoid paper statements.


• Pay by direct debit - cut your bill by around 10% just by signing up for a direct debit.


• Check your meter - even if your company say that the meter's been checked it's always worth looking at to avoid either too-large bill or ones that are too small and land you with one massive payment at the end of your contract.


• Check for discounts - check if your supplier has a cheaper online tariff and switch to that. If you are over 60 or in financial hardship you may also be eligible for discounted energy such as E.ON's 'Staywarm' tariff or British Gas' 'Essentials Advance'.


• Use less energy - simple but effective.

Plan Types

A post-pay billed meter will always be cheaper than a pre-payment meter so if you can switch from pre-payment, do.

That piece of advice is pretty much the only rule of thumb, though. The energy companies that you can go to will depend on your location so the best thing to do is to use a gas and electricity price comparison site to consider your options.

Even having narrowed the field that far you might still find that there are a lot of options. Don't despair, however, as theses normally boil down to a few differences.

Dual fuel - getting both your gas and electricity from the same energy supplier - can be easier to manage than separate deals and fuel price comparison websites often offer a larger incentive for switching to these deals. However, they aren't always the cheapest option so don't rule out separate deals when you're searching.

Green tariffs are unfortunately currently almost always more expensive than those that rely on fossil fuels.

Finally, you may want to consider a price-capped rate. Although this might seem counter-intuitive, as currently prices are falling slightly, a capped-rate offers security for a fixed period of years. That takes away the worry that wholesale prices will push your quarterly rate up by more than you can afford.

The problem with capped rates is that you will usually have to pay an exit fee if you want to switch again. However, if you move house you can usually take your deal with you so if you are confident that you’ve got a good deal there shouldn't be too much need to keep switching.

How to Switch

This will depend on your current energy supplier but in general only commercial supplies for business have a contracted notice period for switching.

If your gas and electricity is supplied on a rolling month contract basis you need to give around 28 days notice if you're switching energy providers or 2 days notice if you're moving house.

Don't worry about being disconnected during a switchover. This is illegal unless you are in severe arrears to the company and don't have a reason such as severe financial troubles or ill-health. The switching process is usually very smooth and your new energy supplier will talk you through it when you decide to switch.

One thing you do need to do, though, is have your gas and / or electricity meters read or read them yourself on the day you switch over. This should eliminate any possible billing discrepancies.

Poor Credit History

Energy suppliers can't refuse your custom but they can offer you a pre-payment meter instead of a bill which, as we've said, is always more expensive.

You can still look for the best deal for your pre-payment meter, however, and then switch once you have rebuilt your credit history over a period of time.

If you have been in debt to your current energy supplier for more than 28 days they can refuse a switch. If the debt is less than 28 days old, however, the owed money will be transferred to the new supplier.