Switching energy suppliers is a great way to save money on your gas and electricity bills, but many people don’t realise the timing can make a significant difference. Whether you’re looking to reduce your energy costs or find a better deal, knowing when to switch can help you maximise savings. In this guide, we’ll discuss the best time to switch energy suppliers, factors to consider, and tips to help you get the best deal.
Why Should You Switch Energy Supplier?
Switching energy suppliers can offer a number of benefits:
Lower energy bills: By switching to a more competitive plan, you can reduce your energy costs significantly.
Better customer service: Some energy companies offer better customer support than others.
Renewable energy options: Many energy suppliers now offer green energy tariffs, which are better for the environment.
Fixed-rate tariffs: Switching allows you to lock in a fixed rate, protecting you from future price hikes.
However, to make the most of these benefits, timing is important. Let’s dive into the factors that can affect the timing of your switch.
When Is the Best Time to Switch Energy Supplier?
1. When Your Fixed-Term Contract Ends
One of the best times to switch energy supplier is when your fixed-term contract ends. If you’re on a fixed-rate tariff, your energy supplier might automatically roll you onto a standard variable rate (SVR) once your contract expires. SVRs are often much higher than fixed rates, which means you could end up paying more than you need to.
Tips for Switching After Contract Ends:
Start looking for a new deal a few weeks before your contract ends to ensure there’s no gap between your old and new tariffs.
Check your contract for exit fees: Some contracts may charge an exit fee for leaving before the end of the term, so be sure to check this before switching.
2. When Energy Prices Are Falling
Another great time to switch is when energy prices are falling. This typically happens when the cost of wholesale energy decreases, but it’s important to act quickly, as energy companies may pass on those savings to customers through lower rates.
Tips for Switching During Price Drops:
Watch for news about price cuts: Keep an eye on price changes from energy providers. Often, price reductions are announced at the beginning of the year or after wholesale energy prices have dropped.
Use comparison websites: Websites like MoneySuperMarket and uSwitch allow you to compare energy deals and find the best offers in real-time.
3. When You Move Home
Switching energy suppliers is also an ideal opportunity when you move to a new home. You might be paying for energy with a supplier that charges more than necessary, and you could find a better deal by shopping around.
Tips for Switching During a Move:
Take a meter reading: When you move in, take a meter reading and compare it with the previous owner’s supplier. This ensures you aren’t paying for energy used by the previous tenants.
Switch early: If you know you’ll be moving, try to arrange for the switch in advance so that the new deal starts as soon as you move in.
4. When You’re on an Out-of-Contract Tariff
If you’ve been on a variable rate or out-of-contract tariff for some time, it might be the right time to switch. Many people are automatically moved to an expensive standard tariff once their fixed-rate contract ends. If you haven’t switched for a while, you could be paying much higher rates than necessary.
Tips for Switching When Out of Contract:
Compare tariffs regularly: Even if you’re on a variable rate, it’s still worth checking other options at least once a year. Providers change their tariffs frequently, and a better deal may be available.
Switch to a fixed-rate tariff: A fixed-rate tariff could offer more stability, helping you avoid price hikes that can happen with variable tariffs.
5. When You’re Looking for a Green Energy Option
If you’re keen on reducing your carbon footprint, consider switching to a green energy supplier. Many companies now offer renewable energy tariffs, and switching could help you align your energy usage with your environmental values.
Tips for Switching to Green Energy:
Look for green energy suppliers: Providers like Octopus Energy and Bulb offer green tariffs, with 100% renewable electricity.
Compare prices: Just because a tariff is green doesn’t mean it’s the most expensive. Make sure to compare different green energy plans to find the best value.
How to Switch Your Energy Supplier
Switching energy suppliers is easier than it may seem. Here’s a simple step-by-step guide:
Compare energy deals: Use comparison websites like Compare the Market or uSwitch to find the best deals.
Check for exit fees: If you're in a contract, check for any exit fees before making the switch.
Choose your new supplier: Once you’ve found the best deal, choose your new energy supplier.
Complete the switch: The new supplier will handle most of the process, including contacting your old supplier and arranging for the switch to happen.
Check your first bill: After switching, make sure your first bill reflects the terms of your new tariff.
Final Thoughts: When Should You Switch Energy Supplier?
he best time to switch energy supplier depends on your current contract, the state of the energy market, and your personal needs. Whether it’s after your contract ends, when prices fall, or when you move, switching can help you save money and find a better deal. Be sure to regularly compare energy suppliers to ensure you’re always getting the best possible rate.
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