Switching electricity suppliers in the UK can be a daunting task, but it can also save you a considerable amount of money. With so many suppliers and tariffs available, it can be challenging to know where to start. However, understanding the process and evaluating your current supplier can help you make an informed decision.
To begin, it’s important to understand the energy suppliers in the UK. There are currently over 60 suppliers in the market, each offering various tariffs and deals. Some suppliers only serve certain regions, so it’s essential to check if they operate in your area. Evaluating your current supplier can also help you determine if you’re paying too much for your energy.
Once you’ve decided to switch, the process is relatively straightforward. You can compare tariffs and switch suppliers through a comparison website or by contacting the supplier directly. However, it’s important to consider any outstanding debts or fees with your current supplier and understand the terms and conditions of your new tariff.
Key Takeaways
- Understanding the electricity suppliers and tariffs available in the UK is essential when considering switching.
- Evaluating your current supplier can help you determine if you’re paying too much for your energy.
- When switching, it’s important to consider any outstanding debts or fees and understand the terms and conditions of your new tariff.
Understanding Energy Suppliers in the UK
When it comes to switching energy suppliers in the UK, it’s important to understand the different entities involved in the process. Here’s a quick overview of some of the key players in the UK energy market:
Energy Suppliers
Energy suppliers are companies that provide gas and electricity to homes and businesses. There are many different energy suppliers in the UK, ranging from large multinational corporations to smaller, independent providers. Some of the most well-known energy suppliers in the UK include the “Big Five” – British Gas, EDF Energy, E.ON, Scottish Power, and SSE.
Gas and Electricity
Gas and electricity are the two main types of energy that are supplied to homes and businesses in the UK. Gas is used for heating and cooking, while electricity is used to power lights, appliances, and electronics. When you switch energy suppliers, you can choose to switch your gas, electricity, or both.
UK Energy Market
The UK energy market is highly competitive, with many different suppliers vying for customers. This competition has led to a wide range of tariffs and deals being offered to consumers, making it easier than ever to find a better energy deal.
The “Big Five”
The “Big Five” are the largest energy suppliers in the UK, and they have traditionally dominated the market. However, in recent years, smaller, independent suppliers like Ovo Energy have emerged, offering competitive tariffs and excellent customer service. Previously, the Big Five, were the Big Six – this changed with the acquisition of Npower by E. ON in November 2019.
Types of Electricity Tariffs
When it comes to switching electricity supplier in the UK, it’s important to understand the different types of energy tariffs available. Here are the most common energy tariffs:
Fixed Tariff
A fixed tariff locks in your energy prices for a set period of time, usually 1-3 years. This means that the price you pay per kilowatt hour (kWh) will stay the same, regardless of any price increases from your supplier. Fixed tariffs can be a good option if you want to budget and avoid any unexpected price hikes.
Variable Tariff
A variable tariff means that the price you pay per kWh can go up or down, depending on the wholesale energy market. This means that your bills can fluctuate throughout the year. Variable tariffs can be a good option if you don’t want to be tied into a contract and want the flexibility to switch suppliers at any time.
Standard Variable Tariff
A standard variable tariff (SVT) is the default tariff you’ll be put on if you don’t choose a specific energy plan. SVTs can be more expensive than other tariffs, as they often don’t offer any discounts or benefits. If you’re on an SVT, it’s worth checking to see if you can save money by switching to a different tariff.
Economy 7 Tariff
An Economy 7 tariff is a type of electricity plan that offers cheaper rates during off-peak hours (usually between midnight and 7am). This can be a good option if you have storage heaters or use a lot of electricity at night.
Dual Fuel Tariff
A dual fuel tariff means that you get both your gas and electricity from the same supplier. This can be a convenient option, as you’ll only have one bill to deal with. Some suppliers offer discounts for customers who take out a dual fuel tariff.
Fixed Rate
A fixed rate means that you pay a set amount per kWh, regardless of how much energy you use. This can be a good option if you want to avoid any unexpected bills.
Overall, it’s important to compare energy tariffs from different suppliers to find the best deal for your needs. Keep in mind that the cheapest tariff isn’t always the best option, as it may not offer the features or benefits you need.
How to Evaluate Your Current Electricity Supplier
Before you switch energy suppliers, it’s important to evaluate your current supplier to determine if you’re getting the best deal. Here are some factors to consider:
Energy Bill
Take a look at your most recent energy bill to see how much you’re currently paying for your energy. This will give you a baseline for comparing prices with other suppliers. Make sure to check if your current supplier has any exit fees or cancellation fees if you decide to switch. This may be in different parts if you have both gas and electricity on the bill.
Energy Use
Knowing your energy consumption is important in finding the right energy supplier. Check your recent bills to see how much energy you’re using and when you’re using it. This information can help you find a supplier with a tariff that suits your energy usage patterns. You can also use our energy saving calculator to get an idea of use.
Customer Service
Consider the quality of customer service your current supplier provides. Have you had any issues with billing or meter readings? Have they been resolved quickly and efficiently? Check online reviews to see how other customers rate your supplier’s customer service.
Meter Reading
Make sure you’re providing regular meter readings to your supplier. This ensures that you’re only paying for the energy you’ve used, rather than an estimated amount. If you’re not already providing regular meter readings, make sure to start doing so.
Direct Debit
Check if you’re paying by direct debit and if you’re receiving any discounts for doing so. Direct debit payments can help you save money and make it easier to manage your energy bills.
Recent Bill
Check if your recent bill has any special offers or discounts that you may be losing if you switch suppliers. Make sure to compare the total cost of your energy bills, including any standing charges and unit rates, to make an informed decision.
By evaluating your current energy supplier, you can determine if you’re getting the best deal and decide if it’s time to switch to a new supplier.
When to Consider Switching Electricity Suppliers
Switching electricity suppliers can be a great way to save money on your energy bills, but it’s not always the best option for everyone. Here are some situations when you might want to consider switching:
Your current deal is ending soon
If you’re on a fixed-term contract, your energy supplier will usually notify you when your contract is coming to an end. This is a good time to start looking for a new deal. If you don’t switch, you’ll usually be moved onto your supplier’s standard variable tariff, which is often more expensive than other deals.
You’re paying too much
If you’re paying more than you think you should be for your energy, it might be worth looking for a better deal. Switching to a cheaper tariff could save you hundreds of pounds a year.
You want a better energy deal
If you’re unhappy with your current energy supplier, switching to a new supplier could give you a better deal. You might be able to find a supplier that offers better customer service or a tariff that suits your needs better.
You have an unpredictable electricity usage
If your energy usage varies from month to month, you might want to consider a flexible tariff. These tariffs allow you to pay for the energy you use each month, rather than paying a fixed amount each month.
Wholesale prices have gone up
If wholesale energy prices have gone up, your energy supplier might increase their prices. If this happens, you might want to consider switching to a supplier with lower prices.
You want to avoid exit fees
If you’re on a fixed-term contract, you might have to pay an exit fee if you want to switch before the end of your contract. However, some suppliers don’t charge exit fees, so it’s worth checking if you can switch without having to pay a fee.
You want to take advantage of the price cap
If you’re on a standard variable tariff, your energy prices will be capped by Ofgem. However, this cap is usually higher than the prices offered by other tariffs. If you want to take advantage of the price cap, you might want to switch to a cheaper tariff.
Process of Switching Electricity Suppliers
Switching energy suppliers in the UK is a straightforward process that can save you a lot of money. Here are the steps you need to take to switch energy suppliers:
- Compare prices: Use an online comparison site such as Uswitch to compare prices from different energy suppliers. Enter your postcode and current energy usage to get an accurate quote.
- Choose a new supplier: Once you have compared prices, choose a new supplier that offers a tariff that suits your needs. You can switch to any supplier that operates in your area.
- Contact your new supplier: Contact your new supplier either online or by phone to arrange your new energy supply. You will need to provide your address and meter details.
- Wait for confirmation: Your new supplier will contact your old supplier to arrange the switch. You will receive confirmation of the switch date and details of your new tariff.
- Meter readings: On the day of the switch, take a meter reading and provide it to your old supplier and new supplier. This will ensure that you are only charged for the energy you have used.
- Final bill: Your old supplier will send you a final bill for the energy you have used up to the switch date. You will then start receiving bills from your new supplier.
It is worth noting that you have a 14-day cooling-off period after you switch energy suppliers. If you change your mind during this time, you can cancel the switch without penalty.
Switching energy suppliers can save you a significant amount of money on your energy bills. It is a simple process that can be done online or over the phone. By comparing prices and choosing a new supplier that offers a tariff that suits your needs, you can ensure that you are getting the best deal possible.
Dealing with Outstanding Debts and Fees
If you have outstanding debts with your current electricity supplier, you may still be able to switch to a new supplier. However, you will need to settle any outstanding debts before you can switch.
If you owe less than £500 for gas and £500 for electricity, you can switch to a new supplier even if you are paying off your debt via a prepayment meter. Your new supplier will simply take on the debt, and you’ll repay them instead. [1]
If you owe more than £500 for gas or £500 for electricity, you won’t be able to switch until you have paid off the debt. You should contact your current supplier to discuss your options for paying off the debt. They may be able to offer you a payment plan or other assistance to help you clear the debt. [2]
It’s worth noting that some suppliers may charge exit fees if you cancel your contract before it ends. These fees can vary depending on your supplier and the terms of your contract. Before you switch, check your current contract to see if there are any exit fees, and how much they are. [3]
In some cases, your new supplier may offer to pay your exit fees for you. However, this is not always the case, so be sure to check before you switch. If you do have to pay exit fees, make sure you factor this into your calculations when comparing prices from different suppliers.
In summary, if you have outstanding debts with your current supplier, you may still be able to switch to a new supplier, but you will need to settle any outstanding debts before you can switch. Check your current contract for any exit fees, and be sure to factor these into your calculations when comparing prices from different suppliers. If you are unsure about anything, contact your current or new supplier for advice.
Understanding Your New Electricity Supplier’s Tariff
Once you have switched your energy supplier, it is important to understand the type of energy tariff you are on. This will help you to manage your energy bills and ensure that you are getting the best deal possible.
Types of Energy Tariffs
There are different types of energy tariffs available, and it is important to understand the differences between them.
- Fixed Tariff: A fixed tariff means that the unit price of your energy will remain the same for the duration of the contract. This can be a good option if you want to protect yourself from price increases.
- Variable Tariff: A variable tariff means that the unit price of your energy can go up or down depending on the market. This can be a good option if you are comfortable with price fluctuations and want the flexibility to switch to a better deal if one becomes available.
- Standard Variable Tariff: This is the default tariff that you will be placed on if you do not choose a specific tariff. The unit price of your energy can go up or down depending on the market, and it is usually more expensive than other tariffs.
- Economy 7 Tariff: This is a type of tariff that offers cheaper electricity rates during off-peak hours (usually between midnight and 7am). This can be a good option if you use a lot of electricity during these hours.
- Dual Fuel Tariff: This is a tariff that combines both gas and electricity into one package. It can be a good option if you want to simplify your bills and potentially save money.
Understanding Your Tariff Rates
When you switch to a new energy supplier, you will be given a unit rate for your energy usage. This is usually measured in kilowatt hours (kWh). It is important to understand how this rate is calculated, as it will determine how much you pay for your energy.
Your energy bill will be calculated by multiplying your unit rate by the amount of energy you have used. For example, if your unit rate is 15p per kWh and you have used 1000 kWh of energy, your bill will be £150.
It is also important to be aware of any standing charges that may apply to your tariff. These are daily charges that cover the cost of supplying your energy, and they are usually included in your energy bill.
Fixed Rate Tariffs
If you have chosen a fixed rate tariff, it is important to be aware of any exit fees that may apply if you want to switch to a different supplier before the end of your contract. These fees can be expensive, so it is important to factor them into your decision when choosing a tariff.
In summary, understanding your new energy supplier’s tariff is essential to managing your energy bills effectively. By choosing the right type of tariff and understanding your rates and charges, you can ensure that you are getting the best deal possible.
Post-Switching Considerations
After switching your electricity supplier, there are a few things you should keep in mind to ensure a smooth transition. Here are some post-switching considerations:
Cooling Off Period
Once you have switched your electricity supplier, you have a 14-day cooling-off period during which you can change your mind and cancel the switch without any penalties. If you change your mind during this period, contact your new supplier and inform them that you want to cancel the switch.
Final Bill
Your previous supplier will send you a final bill within six weeks of the switch. This bill will include any outstanding balance that you owe to your previous supplier. Make sure to pay this bill promptly to avoid any late payment fees.
Direct Debit Payment
If you pay your electricity bill by direct debit, make sure to inform your new supplier of your previous direct debit arrangements. Your new supplier will arrange for the direct debit to be transferred to them, so you don’t have to set up a new one.
Smart Meter
If you have a smart meter, your new supplier should be able to read your meter remotely. If your new supplier is unable to read your smart meter remotely, they will arrange for a meter reading to be taken.
Meter Reading
If you do not have a smart meter, you will need to provide your new supplier with a meter reading. Your new supplier will use this reading to calculate your first bill.
Energy Tariffs
Make sure to check your new energy tariff and understand the terms and conditions. You may be on a fixed-term contract, which means you will be charged a penalty if you switch before the end of the contract. If you are on a variable tariff, your prices may change, so it’s a good idea to keep an eye on your bills.
By keeping these post-switching considerations in mind, you can ensure a smooth transition to your new electricity supplier.
Impact on Carbon Footprint
Switching to a renewable energy supplier can have a significant impact on your carbon footprint. By choosing a supplier that generates electricity from renewable sources such as wind, solar, and hydro, you can significantly reduce your carbon emissions.
According to UK Power, the carbon footprint of electricity generation in the UK is around 233 grams of CO2 per kilowatt-hour (kWh). By comparison, renewable energy sources have a much lower carbon footprint, with wind power emitting just 12 grams of CO2 per kWh, and solar power emitting 41 grams of CO2 per kWh.
By switching to a renewable energy supplier, you can reduce your carbon footprint and contribute to the UK government’s efforts to reduce carbon emissions and protect the environment. The government has set a target of achieving net-zero carbon emissions by 2050, and switching to renewable energy is one of the ways we can all help to achieve this goal.
In addition to reducing your carbon footprint, switching to a renewable energy supplier can also help to protect the environment. Renewable energy sources do not produce harmful pollutants, such as sulphur dioxide and nitrogen oxides, which can have a negative impact on air quality and human health.
Overall, switching to a renewable energy supplier is a simple and effective way to reduce your carbon footprint and contribute to the protection of the environment.
Conclusion
Switching energy suppliers is a simple process that can save you money on your electricity bill. By comparing prices and tariffs, you can find the best deal that suits your needs. Here are some key takeaways to keep in mind when switching electricity suppliers in the UK:
- Do your research: Use online comparison tools to compare prices and tariffs from different energy suppliers. This will help you find the best deal that suits your needs.
- Check your current contract: Before you switch, check your current contract to ensure that you are not locked into a fixed-term contract. If you are, you may need to pay an exit fee to switch suppliers.
- Choose a reputable supplier: Make sure you choose a reputable energy supplier that is authorised by Ofgem. This will ensure that you receive a high level of customer service and that your energy supply is reliable.
- Understand your new contract: Before you switch, make sure you understand the terms and conditions of your new contract. This includes the length of the contract, the price you will pay, and any exit fees.
- Monitor your energy usage: After you switch, monitor your energy usage to ensure that you are not using more electricity than you need. This will help you save money on your electricity bill.
Overall, switching energy suppliers is a great way to save money on your electricity bill. By following these tips, you can find the best deal that suits your needs and start saving money today.
Frequently Asked Questions
How long does it take to switch energy suppliers in the UK?
It usually takes around 21 days to switch energy suppliers in the UK. This includes a 14-day cooling-off period, during which you can change your mind and cancel the switch without penalty. After this period, your new supplier will inform your old supplier of the switch, and they will finalize the process.
Can I change my electricity supplier in the UK?
Yes, you can change your electricity supplier in the UK. There are many energy suppliers to choose from, and you can switch to a different supplier at any time.
What should I consider before switching energy suppliers?
Before switching energy suppliers, you should consider the following:
- Your current tariff and how much you’re paying
- The new supplier’s tariff and any additional fees or charges
- The length of the contract and whether there are any exit fees
- The supplier’s customer service and reputation
Do I need to inform my old energy supplier when I switch?
No, you don’t need to inform your old energy supplier when you switch. Your new supplier will handle the switch and inform your old supplier.
Is it easy to switch energy suppliers in the UK?
Yes, it’s easy to switch energy suppliers in the UK. You can switch online, over the phone, or by post. Your new supplier will handle the switch, and you don’t need to contact your old supplier.
What is the cheapest energy supplier in the UK?
The cheapest energy supplier in the UK can vary depending on your location, usage, and tariff. It’s important to compare prices and tariffs from different suppliers to find the best deal for you. You can use online comparison tools or consult with Citizens Advice or Ofgem for more information.