Switching Energy Suppliers

If you have a standard variable rate tariff – one that has no fixed end date – you will not have to pay an exit fee if you switch.

If you’re on a fixed-term tariff, you might have to pay an exit fee if you switch – it depends on the tariff you have (you’ll find details on your supplier’s website, on your bill or in your welcome pack). But even if you’re on a tariff that imposes exit fees, these cannot be charged if you’re within 49 days of the tariff’s end date.

Your provider will write to you when your tariff is coming to an end so that you have six weeks or so to find another tariff.

If you decide to switch earlier and your tariff imposes exit charges, you will have to pay for each fuel. So if the tariff has a £30 exit fee and you’re switching both gas and electricity, you’ll pay £60.

Exit fees vary according to the tariff, but it’s always important to make sure that the amount you save by switching is greater than the amount you pay in fees to your old supplier.

The amount you pay for your energy will vary according to how much you use. The prices you see quoted are based on average consumption as defined by Ofgem, the market regulator.

The cheapest tariff on the market will usually be a fixed-rate, fixed-term dual fuel (gas and electricity) deal, paid monthly by direct debit.

Note that it is the price per unit of energy that is fixed – the amount you pay will vary in line with your usage. With a variable rate tariff, the rate per unit can go up or down, leaving you vulnerable to price hikes.

Variable rate deals are also known as ‘default’ tariffs. If you are on a fixed-term deal and do not switch at the end of the term, you will move to your supplier’s default tariff. If you’ve never switched or haven’t switched for a few years, you’re likely to be on a default tariff

Fixed rate tariffs tend to be cheaper than variable rate alternatives, usually by a significant margin. 

If you have a prepayment meter, your tariff will be more expensive than the equivalent credit tariff, where you pay for your energy after you have used it.

There are two price caps – one for standard variable rate or default tariffs, and one for prepayment tariffs. These are calculated and managed by Ofgem and limit the amount that suppliers can charge their customers.

The caps are reviewed every six months. As of October 2021, the cap for variable rate deals is set at £1,277, while for prepayment tariffs it is £1,309. 

There is no cap on fixed tariff prices.

The number of new energy providers on the market has increased significantly, with some now offering niche products that cater for a range of requirements. For example, tariffs can now be chosen by payment structure and by type.

Payment structure:

• Fixed (a unit of energy costs the same throughout the year)
• Variable rate (the cost of a unit of energy can change)

Type:

• Single fuel (gas)
• Single fuel (electricity)
• Dual fuel (one bill for both your gas & electricity)
• Prepayment meter (pay-as-you-go for your energy, topping up via a ‘key’ or ‘smart card’)
• Economy 7/Economy 10 (an energy plan that supplies cheaper electricity during off-peak, or night-time hours)
• Green energy (the energy you use is ‘matched’ by purchases of renewable energy sources such as wind or solar)

Some suppliers offer a so-called 'dual fuel' discount to encourage customers to sign up for both gas and electricity. This kind of discount makes the price lower than the cost of buying gas and electricity separately from that provider.

However, it’s important to compare dual fuel deals against the price of getting electricity from one provider and gas from another. You might find that ‘single’ tariff deals work out cheaper overall, but you’ll have two different suppliers, bills and points of contact to deal with.

It is possible to switch from a prepayment meter to a credit meter if you are not in debt to your current provider. You might have to go through a credit check.

Some suppliers charge a fee to change your meter, but there are plenty who don’t, so it’s worth shopping around for the best deal.

If you are unable to switch from your prepayment meter, you may be able to switch to a cheaper prepayment tariff. A quick price comparison will show you the suppliers that could save you money.

We help you compare prices from all the energy suppliers in the UK, so you can find the right deal for your needs. 

It only takes a few minutes to compare.  All you have to do is answer some simple questions, and we'll show you tariffs and offers from all the energy companies. 

We can help you switch to tariffs from most companies directly through MoneySuperMarket.  Just click the green button, answer a few more questions, and you’re done.

If you’d prefer to talk to someone, you can call us on 0800 177 7087. We can answer any questions you might have, and even switch you to a new deal over the phone.

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We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.