Energy prices fluctuate, and many UK households wonder if switching energy providers could save them money. But is it always worth it? In this guide, we’ll explore when you should switch, potential savings, and key factors to consider before making the move.
Can You Save Money by Switching Energy Provider?
Switching energy provider can lead to lower bills, but the savings depend on:
Your current tariff – If you’re on a standard variable tariff (SVT), you’re likely paying more than necessary.
Market energy prices – Fixed deals are usually cheaper when prices are rising.
Usage and location – The best deals vary depending on where you live and how much energy you use.
On average, UK households can save between £100–£300 per year by switching providers, especially if moving from a standard variable rate to a fixed deal.
When Should You Switch Energy Provider?
Switching is a good idea if:
Your fixed tariff is ending – When your deal expires, you’ll likely move to a more expensive standard tariff.
You’re on a standard variable tariff (SVT) – These tariffs fluctuate and are often more expensive.
You haven’t switched in years – If you’ve never switched, you’re likely overpaying.
You’ve moved home – Your new property may have an expensive default energy provider.
A supplier offers better customer service – Switching isn’t just about price; customer support matters too.
How to Switch Energy Providers in the UK
Switching is simple and takes around 3 weeks, including a 14-day cooling-off period.
Here’s how:
1. Compare Energy Deals
Use an energy comparison website to find the best deal based on your postcode and energy usage.
2. Check for Exit Fees
If you’re in a fixed contract, check if there’s a penalty fee for switching early. Many providers waive fees if you switch within the last 49 days of your contract.
3. Choose a New Supplier
Select a provider with a tariff that fits your needs, considering:
Fixed vs variable rates
Green energy options
Customer service ratings
4. Submit Your Meter Reading
Your new supplier will request a final meter reading to ensure a smooth transition and correct billing.
5. Wait for the Switch to Complete
Your new provider will handle the switch, and there will be no disruption to your supply.
Fixed vs Variable Tariffs: Which is Better?
Choosing the right tariff depends on your financial situation and market conditions:
Fixed-Rate Tariff
Locks in your price for 12–24 months
Protects against price increases
May have exit fees if you switch early
Variable-Rate Tariff
Can be cheaper if energy prices fall
No exit fees in most cases
Prices fluctuate, making budgeting harder
A fixed tariff is usually recommended when prices are expected to rise, while a variable tariff can be better when prices are declining.
Pros and Cons of Switching Energy Provider
Pros:
Potential cost savings
Access to better customer service
Option to choose renewable energy
No disruption to supply
Cons:
Exit fees on existing contracts
Some suppliers may have poor service
Not all fixed tariffs guarantee savings
Common Questions About Switching Energy Providers
1. How often should I switch energy providers?
You should compare deals at least once a year, especially when your fixed contract is ending.
2. Will my energy supply be interrupted?
No, your gas and electricity supply will remain uninterrupted during the switch.
3. Do I need to tell my current supplier I’m switching?
No, your new supplier will handle the process for you.
4. What if my new supplier goes bust?
If your provider ceases trading, Ofgem will automatically move you to a new supplier, ensuring your supply continues.
5. Is it worth switching if I have a smart meter?
Yes! Most smart meters work across different suppliers. However, some older models may lose functionality and require manual readings.
Final Thoughts
Switching energy provider is one of the easiest ways to save money on household bills. While it may not always lead to huge savings, reviewing your options regularly ensures you’re not overpaying. If you’re on a standard variable tariff or haven’t switched in years, comparing deals could help you find a better rate and potentially save hundreds of pounds per year.
If you’re unsure, use an energy comparison site to check whether switching is the right move for you.
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