At present, there are not many choices available for buying electricity. Wait on shifting to a new energy supplier if you are unable to find a rate that is more affordable than your present one.
If your rate is fixed, it could be better to stick with the package that your current provider automatically provides. This is due to regulations that limit the amount energy providers can charge for gas and electricity on the default pricing plan. Although the price cap may be raised after June 30, 2023, these laws will stay in effect until April 2024.Your energy expenses may thus increase, but they may also decrease if energy prices reduce globally.If you want to learn more on energy contracts, keep reading.
Considerations When Switching Contracts
It’s crucial to confirm certain information prior to switching, taking into account your situation. Have a look here for everything you need to know about your energy contract. For instance, if you have a prepayment system, it’s advisable to confirm whether your new provider offers this type of tariff. If your current plan involves an exit fee, you should review your account statement or online account to see if the fee applies.
You may change suppliers without incurring an exit fee if your contract is set to end in less than seven weeks or if your supplier contacts you with that option. However, keep in mind the following if you’re unsure when your contract expires or whether you have to pay an exit fee:
- When will you be able to switch without a penalty?
- How much can you save by changing providers?
- Will you be eligible for the Warm Home Discount in 2022?
If your supplier was part of the scheme on August 21st, 2022, you may receive the discount even after you switch. Verify the status of the discount and its payment details with your previous supplier.
If you have a smart meter, check if your meter will work in smart mode after you switch. Some providers may not support this function, and you may need to submit your readings manually.
If you have a prepayment meter, you may be limited to more expensive prepayment tariffs instead of cheaper direct debit options. If you don’t owe money to your current supplier, consider upgrading to a credit meter, which enables you to choose direct debit tariffs. If you owe money, you can change suppliers after settling your debt.
Finally, if you have a two-rate or “Economy 7” electricity meter, contact your new provider to confirm whether they offer single rate tariffs. Some single rate tariffs may not be compatible with two-rate meters
An excellent alternative if you want to reduce your energy costs is to switch suppliers. Yet it’s essential to remember that there might not be many offers from suppliers at this time. You can check authorised price comparison websites listed on Ofgem’s website to see if any deals are available.
On the other hand, if you are dissatisfied with the level of customer care provided by your present supplier, you can evaluate the customer service ratings of several energy providers before switching. Switching can be done over the phone or online, depending on the supplier’s restrictions.
Once you have decided to switch, the new supplier will set up the switch and notify your old supplier. It’s important to take a meter reading on the day of the switch to give to your new supplier, so you’re not charged for energy used before the switch.
14 days after signing the contract with the new supplier, you have the option to terminate the move without incurring any expenses. After the cooling-off period, the switch should happen within 5 working days. You can ask to switch sooner by making an ‘express request’, but this will depend on the supplier’s policy. Whether you have a specific date in mind, you should speak with your new supplier to see whether they can accommodate your transfer..
The final bill from your former supplier must be paid, or you must request a refund if you are owed money. Should you choose that you’ve changed your mind and want to cancel the move, you ought to let the new supplier know as soon as you can in order to stop it from happening.
Cancelling a Contract
You should notify the new supplier right away if you decide to reverse your decision to switch to them. You’ll have choices on what to do next from your new supplier. You may consent to a new agreement with your old supplier, your present provider, or an alternative supplier.. As an alternative, if you choose to do nothing, your new supplier will put you on a “deemed” contract with a default energy rate.
You have just fifteen days in which to reach an agreement on a new contract if you choose to deal with your former provider once more. The 15-day period starts from the day your new supplier sends you your options. After you have returned to your old supplier, they will only offer you similar terms to your old contract for 16 working days, with the 16-day period starting from the day you are switched back.
Until you agree to a new contract with them or a new deal with another supplier, your new supplier must keep supplying your energy.
You should get in touch with the new provider if there is a delay in switching suppliers and it has been more than 15 working days after you supplied them your information to see if they have the appropriate information. If they do, they should pay you £30 automatically within 10 working days. You can complain to the supplier if they do not pay this. If you require additional advice regarding compensation, contact the Citizens Advice consumer helpline
In conclusion, when it comes to your energy contract, it’s important to consider your options carefully before making any changes. If you’re on a fixed rate, it may be best to stick with your current provider, as regulations limit the amount energy providers can charge for gas and electricity on the default pricing plan. If you do decide to switch, there are a few things to keep in mind, such as prepayment systems, exit fees, and meter compatibility. You can compare suppliers to find a better deal or better customer service ratings. When switching, take a meter reading on the day of the switch and ensure you pay any final bills or request a refund. If you need to cancel a contract, notify your new supplier right away and be aware of the 15-day period for reaching a new agreement with your former provider. If there are delays in switching, you may be entitled to compensation, and you can seek advice from the Citizens Advice consumer helpline.