If it’s been a while since you switched energy suppliers, you could be missing out on big money savings on your gas and electricity. What’s more, switching is far easier than you might think – according to DTI research, 90% of people who have switched suppliers thought it was easy.
The first thing to do is to work out how much you’re paying every year, by looking back over your monthly Direct Debits, quarterly statements, or prepayment records. The next step is to use our price comparison service to see how your current deal measures up against other suppliers.
Before choosing a new supplier, you should do a little more fact-finding to make sure that it’s the right one for you. There are plenty of suppliers to choose from, and they all offer different tariffs and services. Do you use gas, electricity, or both? Although dual-fuel tariffs usually offer discounts, it can be better to use different suppliers for your gas and electricity if your usage isn’t evenly split between the two. Rates and terms vary significantly between suppliers, with some offering special tariffs for a limited period only. It’s also worth asking yourself how you want to pay your bills – many suppliers offer additional discounts for payment by Direct Debit, online account management and paperless billing.
You’ll also need to think about what type of tariff you want, as most major suppliers have a number to choose from. Fixed term deals keep prices stable for a long period, but rates can be high initially, and you won’t benefit from any price drops in the energy market. Variable tariffs track market rates, which can work out well if prices go down, but also leaves you open to the occasional steep rates rise. If you’re environmentally conscious, you can also choose to go with a green tariff, although it’s worth noting that some are greener than others.
Once you’ve selected your new supplier, you’ll need to contact your current provider to inform them of the change. You’ll usually need to give around 28 days notice, and if you’re tied into a fixed contract, you might need to pay a cancellation fee. On the day of the switch, you should take a final meter reading, which you’ll need to give to both your new and old supplier. After that, you just have to pay a final bill from your old provider, and start paying your new one.