How to switch energy provider

With energy prices finally dropping – the average energy bill will be down to £1,568 a year in July, when the new price cap comes in – you might be able to save some money by switching providers. 

If you’ve never switched, you’re likely not alone. Around 27% of households have never changed their energy supplier, and previous statistics from Age UK suggested over 65s are less likely to switch providers of such essential services. 

These figures are backed up by a recent survey that shows older people are the most satisfied that they’re getting a fair deal from their supplier – but making the switch to a new provider could reduce your bills (or put you on a tariff that better aligns with your values, such as greater use of renewable energy). 

With new offers coming to the market, you might be wondering whether you should fix your energy deal now – and if you do, knowing how to make the switch is key. 

What am I paying? 

We’ll take you through the process of switching in a moment, but before we get to that, it’ll be helpful if you do a little admin first. 

Find a copy of your recent bill(s) and get a sense of how much energy you’re using throughout the year for gas and electricity. 

When you look at your paperwork or online account you 'll see there are several costs that make up your energy bill. These are: 

• Unit rates: The rate charged per unit of electricity or gas (measured in kWh).
• Standing charges: The daily amount charged by your supplier, even if you don't use any energy. 
• Taxes and policy costs: These include 5% VAT and government initiatives like green levies to support renewable energy. 
• Other elements, such as maintaining current installations or rolling out new smart meters. 

Find out how much you’re paying for each unit of energy and make sure you note down your supplier’s name and the tariff you’re on. 

It’s important to find out if you’re on a fixed-term deal too (this should be shown on your bill) - if you want to leave before the end of your contract then you may have to pay exit fees.  

However, given these deals have been pretty much non-existent thanks to the skyrocketing energy bills in 2022, you’re probably on something called the ‘standard variable tariff’ or ‘default tariff’ – and it’s likely to be the most expensive your supplier offers.  

If you are on a fixed-term tariff, you’re allowed to switch within 49 days of it ending without paying any exit fees – so keeping an eye on when your deal is set to expire can be really helpful. 

If you see that your usage is more than the energy cap – currently £1,690, or £141 a month – that's because this figure is for an average household. 

If you’re exceeding this, perhaps because you’re spending more time inside or have regular visitors to stay, it’s probably time to find ways to reduce your energy use.

How to find a cheaper energy deal 

Now you’ve got the important details to hand, it’s time to work out if you can save money with another supplier, or find a tariff that better suits your lifestyle. 

To find out what deals are out there, it makes sense to use a few price comparison websites. Simply enter your postcode and the amount of energy you’re using, and they'll scour the market to come up with a list of alternative suppliers for you. 

Even if you don’t have your details to hand, you can still enter your address and the comparison service can usually tell you the name of your provider, whether your plan has an exit fee and the estimated monthly or annual cost. 

Once you have your results you can compare how much you’ll be paying for your energy – remember, it’s important to look at both the price of each kWh, and the daily standing charges, to get an accurate view of the overall cost to your budget each month. 

Also make sure you note any potential exit fees – as the energy price cap fluctuates, you might find it’s cheaper to switch to a new tariff later on, and a lower cost to leave the current deal can give you a little more freedom. 

Paying by direct debit is generally the cheapest way to manage your energy, and provides a consistent bill amount each month. 

Don’t always jump for the cheapest deal though. It’s worth checking out how well each supplier deals with its customers – especially in the event of a complaint - – with some providers falling short, according to consumer group Which?.  

You can check how good a provider’s customer service is through the Citizens Advice Star Rating. 

You may pay a premium for genuinely ‘green’ suppliers because they’re investing in their infrastructure for energy sources such as wind.  

If you don’t have a smart meter, you may find that some tariffs won’t be available to you either, as they will adjust the cost of energy at higher- and lower-usage times. 

How to switch energy providers 

Making the switch – once you’ve found a deal you are happy with – is straightforward, as the energy supplier you’re moving to will do the necessary legwork.  

Contact the intended supplier directly through its site or on the phone, or many price comparison sites will do the work for you. Simply give your address, current provider, estimated energy usage and your current tariff and the move should happen within five working days. 

“We’ll take all the information your new supplier needs to bring you on seamlessly, such as direct debit details and whether you have any special requirements, for example if you need a Braille bill,” says Gareth Kloet, Energy Expert for price comparison site Go Compare. 

Once you’ve selected your supplier, you can choose to start receiving energy from them immediately, or wait until after a 14-day ‘cooling off period’, during which you can cancel any contract you’ve entered into and move to a different supplier (or back to your original one).  

If you make the switch before the 14 days is up, you’ll need to pay for any energy used before making the change to another provider. 

You can claim £30 compensation if your new supply doesn’t start within five working days, or if you’re switched by mistake, with this money paid within 10 working days of the change. 

What if you’re in debt? 

There are estimated to be more than five million people in debt to their energy company, including older households on low pension incomes, says Citizens Advice.  

You can still switch your energy provider if you’re in debt, provided you’ve owed money for under 28 days – this will be added to your final bill. If it’s longer than that, you can’t make the switch and will need to pay the money back first. 

Gillian Cooper, Director of Energy at Citizens Advice, recommends anyone in debt speak to their supplier to discuss a plan of action. “They may be able to offer a cheaper deal and are responsible for helping you find an affordable payment plan,” she adds. 

It’s also worth finding out if you’re eligible for any grants or benefits such as the Winter Fuel Payment, Warm Home Discount or Pension Credit.  

You can get more info about these benefits by speaking to your energy supplier or to find out more about what support you may be entitled to, you can go to the Independent Age website or call its free helpline on 0800 319 6789 or use the Turn2Us benefits calculator.  

Key takeaways 

• Take some time to find all the details of your current energy supplier and how much gas and / or electricity you’re using each year – it can help save a lot of money when comparing suppliers.
• Check to make sure you’re not on a fixed-term contract – if you are, find out how much it will cost to leave. 
• Shop around or use a price comparison website to find out which deals will offer you the lowest cost (or a new service that fits your lifestyle better). 
• Contact the new supplier and give them your address and details of your current energy provider and usage. 
• You can still change your mind up to two weeks after making the switch, thanks to a cooling off period. 
• If you’re in debt with your provider, speak to them to find out what options are available to help you pay off any outstanding balances.