Energy Guides

Switching energy suppliers

More than 5.1 million households saved by switching their gas and electricity to a new supplier during 2007. According to figures from energy regulator Ofgem, you could save more than £100 by switching your energy.

Why not compare gas and electricity prices to find out if you could save money on your energy bills? If you own or run a business you can also compare business energy prices.

Alistair Buchanan, Ofgem Chief Executive, advised: “With winter drawing in and all suppliers having lowered their prices, now is a good time for all customers to check whether they are getting a good deal for their energy.”

Switching is very easy and there are numerous benefits. As well as saving money, you could also save energy - and the planet - by getting your electricity from renewable sources such as wind and wave power.

1. Video guide
2. Why should I switch?
3. Who should I switch to?
4. How do I switch?
5. Is there anything else I should do?
6. How will I know when I’ve switched?
7. Do I have to pay to switch?
8. More ways to save

2. Why should I switch?

Switching will save you money not just because some suppliers are cheaper than others, but also because the best deals are invariably offered to new customers.

Providers reel you in with flashy deals and then rely on them simply staying put once the offer is no longer so competitive. However, if you regularly check the energy market using a comparison site, you can ensure that you always pay the lowest price possible for your gas and electricity.

By switching to a package where you pay your bills by direct debit, and take paperless billing you will save even more. Online account management has another advantage too; it allows you to enter your own meter readings over the internet, eliminating the estimated billing process that can often leave you overcharged.

Switching provider could also get you a better standard of customer service, extra features and savings on dual fuel or online-only tariffs.

3. Who should I switch to?

You might have read that a particular energy provider is the cheapest in the country, but the price you pay will actually depend on where you live so the cheapest in the UK might not be the cheapest for you.

It’s important to shop around before making a decision and using an
energy price comparison calculator, like the one on EnergyChoices.co.uk, allows you to find the cheapest provider for your postcode.

You can also compare boiler cover at BoilerChoices.co.uk, helping you to find the best deal on protecting your boiler and central heating system.

4. How do I switch?

If you use a switching service like ours, all you have to do is choose your new provider and fill in some personal details on our online form. We’ll pass these on to your new provider who will be in touch with details of your switch.

You don’t have to contact your old supplier but to ensure the smoothest of switchovers, you should really give them 28 days notice of your switch - which you might want to put in writing too.

5. Is there anything else I should do?

Make sure that you have cleared any outstanding bills with your existing provider as being behind on your energy payments might prevent you from switching.

You should take a meter reading on the day of your switchover as you can then compare it against the final bill from your old provider and as the starting point for bills from your new provider.

You should also check the meter number to make sure that you’re being billed for the correct meter after your switch has been completed.

6. How will I know when I’ve switched?

It usually takes between four and six weeks for your switch to take place and after you sign up you’ll receive a letter from your new supplier notifying you when the switch will happen.

Your old supplier will send you your final bill - marked “final bill” - and after that you’ll only receive bills from your new energy supplier.

7. Do I have to pay to switch?

Switching your energy supplier doesn’t cost a thing. You will have to budget for you final bill from your old supplier though, and if you pay by standing order there might be a bit of a backlog. On the other hand, you might have been paying too much and could land yourself a refund.

Plus the potential savings that can be made are more than worth the small effort it takes to switch - simply by spending 10 minutes online you could cut as much as £100 off your energy bills.

8. More ways to save

When you’re looking for your new provider you should think about the way that you pay your bills as well as how much they are.

If you don’t already pay by direct debit, it’s well worth switching to this payment method as it will save you even more - as will switching to an online tariff.

If you pay by prepayment meter then you stand to save the most by switching to monthly direct debits. According to Ofgem prepayment customers in some parts of the country stand to save as much as £170 a year.

You should also check with your new energy provider to see if they offer any grants or discounts on home efficiency. Many do and combined with other small changes around your home, cavity wall insulation or maybe a new boiler could push your yearly savings up even more.

Article updated: Friday 22 May, 2009

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