In a context of rising energy costs and growing environmental concerns, knowing how to switch energy suppliers effectively has become an essential skill for UK households.
This comprehensive guide will walk you through the process of changing your energy provider, helping you save money on your bills while potentially supporting more sustainable energy options.
At Terraverde, we believe that every action counts in the fight against climate change. By making informed decisions about your energy supplier, you’re not just potentially reducing your household expenses, you’re also taking a step towards supporting more sustainable energy practices.
1 – Understanding the UK energy market
The UK energy market is a complex ecosystem of suppliers, regulators, and consumers. It might help you make more informed decisions about switching if you can understand a little more about how that market operates.
The market is regulated by an organisation called Ofgem which dictates to companies operating in the sector what they can and cannot do, including how much they can charge their customers.
Energy is supplied to homes and businesses across the country via the national grid system. The six largest energy supply companies are referred to as ‘the big six’ but there are numerous smaller suppliers operating as well.
The main tariff types that impact how much you’ll pay for your energy are:
– fixed rate tariffs
– variable rate tariffs
– green energy tariffs
– economy tariffs
2 – Why switch energy suppliers?
Switching energy suppliers can offer numerous benefits, both financial and environmental.
Financial benefits can include – saving significant sums of money on a regular basis, accessing introductory discounts and offers, and getting deals that better suit your needs and your energy use patterns.
Environmental benefits can include – the option to use suppliers with a higher percentage of renewable energy, to support companies investing in green technologies, and a reduction of your overall carbon footprint as a consumer.
You might also decide that a particular company aligns more closely with your values, or that they offer a better standard of customer service.
3 – When is the best time to switch energy suppliers?
Most energy supply contracts are fixed term, relating to either 12 or 24 months. It is generally cheaper to switch suppliers when your contract expires to avoid early exit fees.
You may decide to switch when energy prices are cheaper, which tends to be in the spring or summer months. If you lock in a deal before the winter then you can avoid the impacts of price rises that often happen as temperatures drop and energy usage rates increase.
Market dynamics mean that prices being offered by suppliers fluctuate so it can be helpful to keep a close eye on what deals are being offered.
4 – Steps towards switching energy suppliers
Switching energy suppliers might seem a little daunting, but it’s a straightforward process when broken down into steps.
Step 1 – Get all your information together, such as energy bills, tariff details, annual usage numbers and your postcode.
Step 2 – Compare the tariffs and deals available to you using comparison websites, look into green energy options, and consider customer service ratings as relevant.
Step 3 – Choose your new supplier and select the deal that works best for you, reading carefully the terms and conditions involved, and checking for any early exit fees.
Step 4 – Make the switch by contacting your chosen supplier, providing them with your details and meter readings.
Step 5 – Confirm the changes you’ve made through communication with your supplier, taking note of the switch date and settling any final bills with your old supplier.
5 – Understanding energy tariffs
Choosing the right energy tariff is crucial for maximising your savings or aligning with your environmental values.
Fixed rate tariffs mean that consumers are charged on a price-per-unit basis for the energy they use during a given period. The benefits of which are price stability but these are not always the cheapest options available. Exit fees often apply with fixed rate arrangements.
Variable tariffs mean the prices you pay can fluctuate, with no long-term commitments being required and consumers being able to benefit if energy prices fall.
Green energy tariffs effectively mean energy suppliers promise to match your usage with renewable energy. These deals can be more expensive but they support more sustainable energy production which more and more UK consumers are coming to view as a personal priority.
Economy tariffs offer consumers the chance to pay lower costs if they use most of their energy during off-peak hours. Special meters are required but there are savings to be had if you are able to use most of your energy at night, for example.
In summary
Switching energy suppliers in the UK is a powerful tool for managing your household expenses and supporting sustainable energy practices.
By understanding the market, comparing tariffs, and following the switching process, you can potentially save money and reduce your carbon footprint.
Ready to make a change? Start by comparing energy suppliers today using Ofgem-approved comparison sites. And remember, your impact doesn’t have to stop there. At Terraverde, we’re working tirelessly to address climate change and its impacts.
Consider supporting our work by donating to us. Together, we can create a greener, fairer future for all. Visit our website to learn more about how you can make a lasting difference.
