How to switch your energy supplier

Why swap your energy supplier?

The most common reason for swapping energy supplier is to save money. However, when the regulator Ofgem introduced its Energy Price Cap most comparison sites suspended switching.

With prices falling again, swapping suppliers for cheaper deals has become worth considering.

Other reasons for switching include:

• Moving house
• Better customer service
• To benefit from an electric vehicle (EV) tariff
• To sign up to a ‘green’ tariff
• To move to a supplier signed up to the Warm Home Discount scheme

What is the Energy Price Cap?

The Energy Price Cap sets the maximum amount most energy suppliers can charge for each unit of energy and standing charge if you're on a standard variable tariff. 

The Energy Price Cap is expressed as an annual figure based on typical annual household use. It is set each quarter by the energy regulator Ofgem.

For energy customers who pay by direct debit, the Energy Price Cap is £1690 for the period from 1 April to 30 June 2024.

This table shows how this is broken down for the average household on a dual fuel tariff, for the price cap that came into effect on 1 April 2024.

Some suppliers are exempt from the price cap if they generate and supply green energy to customers. As of March 2024, Ecotricity, Good Energy and 100Green were exempt – you should bear this in mind if you are looking for a green energy switch.

What do you need to switch your gas and electricity providers?

The best way to switch gas and electricity providers to save money is to use a price comparison website.

Popular price comparison sites include:

1. MoneySupermarket.com
2. Uswitch.com
3. GoCompare.com
4. Confused.com

Some suppliers, such as green supplier Ecotricity, are not on price comparison sites. This means if you want to switch for environmental reasons, you may have to apply direct to the provider.

A price comparison site or individual supplier will ask you for the following information in order to change gas and electric supplier:

Your postcode and address

Energy suppliers charge different unit rates and standing charges to different areas of the country. Some suppliers only serve certain areas.

Current supplier and tariff plan

You can find your supplier and tariff on a recent energy bill or by visiting your online account. If you need help, check our guide to finding your energy suppliers.

Your latest usage levels

These will be shown on your bill or online account, either in energy units or the amount of money you have paid.

Energy usage is calculated in kilowatt hours (kWh). 1kWh will power a 100 Watt lightbulb for 10 hours.

Payment details

Options for paying for energy include:

• monthly direct debit
• quarterly direct debit
• paying on receipt of a quarterly bill
• prepayment.

Step-by-step guide to switching energy suppliers

Step 1: Check your current contract

If you’re on a standard variable (default) tariff you can switch suppliers at any time.

If you’re on a fixed tariff you can switch penalty-free if you have 49 days or less left on your contract. If there are 50 days or more left, you might have to pay an exit fee to leave your contract early.

Step 2: Compare energy suppliers

• Use a price comparison website to compare energy suppliers. ‘Dual fuel’ means getting both electricity and gas from the same supplier; or you can have different suppliers for each. If you only have electricity in your home, you can just switch electricity suppliers.
• If you are looking for a green energy switch, you may need to go directly to some green energy companies and enter your details on their website to get a quote.
• You can also get quotes directly from other energy companies by visiting their respective websites. Energy supplier comparison will take a bit longer if you collect direct quotes this way.

Step 3: Choose a new supplier

Once you have chosen a supplier and tariff, confirm this with the price comparison site or the energy company if you have gone direct.

There is no need to contact your existing supplier – the price comparison website or your new supplier will initiate the switch for you.

Step 4: Finalise the switch

Switching suppliers is all done remotely – no one comes to your home and there are no changes to the cables or pipework that supply your property with gas and electricity. Your energy supply will not be interrupted at any point.

Switching dual fuel suppliers might involve different switchover dates for each type of fuel.

Most suppliers adhere to the Energy Switch Guarantee, which means your energy switch should take no more than five working days.

But follow these tips:

• Take gas and electricity meter readings on the day of the switch and give these to your new supplier. Your new supplier will share these with your old supplier. However, you shouldn’t need to do this if you have a smart meter – it will all be done automatically.
• You’ll receive a welcome letter or email from your new supplier within a few days of switching. This will give the details of your new plan.
• Your old supplier will send you a final bill within six weeks and you’ll need to pay any money owed. If you are in credit with your old supplier, it should refund you within 10 working days of sending you the final bill.

Considerations when choosing a new energy supplier

Cost

A price comparison website or quote from a new supplier will estimate how much each tariff will cost you based on your previous annual energy use.

If you are switching to an electric vehicle (EV) tariff your quote will include predicted charging costs. If you are switching at the same time as having solar panels installed, or additional insulation, you will need to estimate lower usage.

Your home’s Energy Performance Certificate (EPC) rating should improve and this may help you estimate savings.

Exit fees

Fixed energy tariffs usually come with exit fees if you want to switch to a new tariff during the fixed period. You should consider these fees when working out how much money you can save by switching.

Standard variable (default) tariffs don’t have exit fees – you can leave penalty-free at any time.

Contract length

Standard variable tariffs are rolling contracts, with no end date. Fixed energy tariffs are usually for one, two or three years.

Tariff options

All energy suppliers offer standard variable tariffs. With these, the amount you pay per unit of gas and electricity will change whenever your energy company raises or lowers its prices.

With a standard variable tariff, Ofgem’s Energy Price Cap limits how much you can be charged for energy, based on typical use over a year. Green energy companies are an exception to this and are exempt from the price cap.

With a fixed tariff, unit charges and standing charges for gas and electricity are fixed for the length of your deal. However, your bill could vary depending on how much energy you use. The Energy Price Cap does not apply to fixed tariffs.

Some providers offer EV tariffs with cheaper energy prices at night so you can charge your electric car for use the next day.

Different tariffs are available to households with Economy 7 or Economy 10 meters. However, these are being phased out.

Energy types

Most UK households use gas and electricity. If you get both of these from the same supplier it is known as ‘dual fuel’. Some properties only use electricity.

A minority of homes use alternative fuels such as heating oil, liquefied petroleum gas (LPG), coal, biomass and renewables. But this guide is just about gas and electricity.

Payment methods

The cheapest way to pay for energy is monthly direct debit. With some energy tariffs, it is compulsory to pay this way. You can also pay by quarterly direct debit or on receipt of a quarterly bill. You can prepay for energy if you have gas/electricity prepayment meters.

Meter types

Most households have a ‘credit’ meter and pay for energy after they have used it. Some households have ‘prepayment’ meters where they pay for energy before they use by loading up a smartcard or key, or using a smartphone app.

A small number of households have Economy 7 or Economy 10 ‘time-of-use’ meters, where different rates are charged for electricity use during the day/night. However, these are being phased out.

There are sometimes issues with smart meters and switching. If you have an old-style (SMETS1) smart meter, it may lose some functionality when you switch suppliers. Ask your new provider about this – it may mean you have to take manual meter readings for a period of time.

Customer service

You might switch energy suppliers to move to a provider with better customer service. Citizens Advice has ranked the customer service of different suppliers – have a look at the scores if customer service is important to you.

Green energy options

Some energy suppliers offer ‘green’ energy tariffs to help the environment. A green tariff means some or all of the electricity you buy is 'matched' by purchases of renewable energy that your energy supplier makes on your behalf. Renewable energy sources include solar, wind, tidal, hydro and geothermal.

These greenest companies are not subject to the Energy Price Cap so may be more expensive. Using less energy will also help the environment and keep your bills lower. The Energy Saving Trust offers advice about how to use less energy.

Benefits and challenges of switching energy suppliers

Advantages of switching

The main advantage of switching energy suppliers is to save money. However, in the current market, most energy suppliers charge the same rates as each other on their standard variable tariffs due to the Energy Price Cap.

Some fixed tariff deals might be cheaper than the Energy Price Cap. However, if the price of energy goes down, being on a fixed deal might mean paying more than necessary. If prices continue to fall and you want to leave before the end of your fixed tariff, you could face high exit fees.

Other advantages of switching include to:

• Move to a green tariff
• Change from a prepayment meter to a post-pay tariff
• Join a supplier with better customer service
• Benefit from an EV tariff

Common issues and solutions

Occasionally there are issues during the switching process. These are usually sorted out quickly. Here are some common issues and their solutions:

Frequently asked questions about switching energy providers

Who are the main energy suppliers in the UK?

The six largest energy suppliers in the UK are known as the ‘big six’.

They are:

1. British Gas
2. EDF Energy
3. E.ON
4. Npower
5. Scottish Power
6. SSE

Will I be billed twice when I switch energy?

No, you won’t be billed twice when you switch energy. Your new supplier will only start billing you on the changeover date. Take meter readings on this date to make sure you are charged correctly.

What happens to my credit when I swap energy suppliers?

If you’re in credit when you swap energy supplier, your old supplier should repay this money to you within 10 working days. If it doesn’t, it will owe you an extra £30 in compensation.

How long will it take to switch my energy supplier?

According to Ofgem, once you've signed up with a new supplier, the switch should be complete within three weeks. If your new supplier is signed up to the Energy Switch Guarantee, the move should be completed within five working days.

Will my supply be interrupted during switching?

Your energy supply will not be interrupted when switching gas and electricity suppliers.

Can I switch if I am in debt with my current supplier?

You can switch if you've been in debt to your supplier for less than 28 days. Your old supplier will add any owed amounts to your final bill.

You'll need to repay a debt first if you've owed money for more than 28 days.

If you have a prepayment meter, you can still switch with debts of up to £500 on gas and £500 on electricity. The supplier you switch to will take on the debt and you will repay your new supplier instead.

Switching with a prepayment meter

If you have a prepayment meter, you can still switch energy suppliers. Most suppliers have at least one prepayment tariff available.

How do I switch from a prepayment meter?

Some households may want to switch from a prepayment meter to a credit meter.

If you have a smart meter in prepayment mode, you can ask your energy supplier to change it so you can post-pay (pay for your energy after you use it) instead.

If you have a non-smart prepayment meter, you can ask your energy supplier to fit new gas and electricity credit meters in your property. Under Ofgem rules, the supplier must do this if you pass all required credit checks. Most suppliers will also want you to have paid off any prepaid energy debt.

How far in advance can I switch energy supplier?

If you are on a standard variable tariff you can switch energy suppliers whenever you want.

If you’re on a fixed tariff, you can move to a new plan 49 days before your current plan ends without paying an exit fee.

Can I switch with a smart meter?

If you have a smart meter, you can still switch energy supplier. However, not all smart meters will work in 'smart mode' (automatically sending readings to your supplier after switching) after switching. Check with your supplier first.

Summary: Switching your energy supplier

Switching energy suppliers is easy and can often be done online via a price comparison site that will arrange the switch for you.

The main reason for switching energy suppliers is to save money. However, this is quite difficult to do at the moment. Currently, most households will be best off on their supplier’s standard variable tariff, although this may change in the future.