In this guide
Comparing deals and switching energy providers can be a great way to reduce your monthly bills – potentially saving you hundreds of pounds. If you want to see what’s available, we’ve listed some of the cheapest energy deals available.
Four out of 10 households across the UK are struggling to pay their energy bills. That’s according to the latest research from the Office for National Statistics (ONS), which also found 44% of the UK are using less energy to bring down the costs.
But before you decide to switch off some of your radiators, then have you explored switching your energy deal first? Not only could this save you money, but it could also switch you to a provider with better customer service or environmental credentials.
To help you switch we’ve listed the best deals below, and we also explain:
- What are the best energy deals?
- Should I switch energy providers?
- Should I switch to a fixed or variable energy deal?
- How to switch energy providers
Read more: What is the energy price cap?
What are the best energy deals?
According to our preferred partners Uswitch, we’ve listed the best energy deals for new customers below. Deals are correct as of 24 May.
Home Energy
Average annual bill: £1,539
Rate: Variable
Ecotricity
Average annual bill: £1,540
Rate: Fixed
Tulo
Average annual bill: £1,576
Rate: Variable
Read more: Why the energy price cap won’t bring bills down
Should I switch energy providers?
People mainly switch energy providers to change to a provider with better customer service or to move to a cheaper tariff.
If you’re moving to save money, then make sure to do your research. Some deals have exit fees included that would eat into the saving from switching. Exit fees are found on fixed energy deals, not on standard variable rates.
“To get the best possible deal, people should speak to their supplier about which tariffs are available and compare these with other suppliers,” said Gillian Cooper, Director of Energy at Citizens Advice.
She also explained that while customers had previously been limited with energy switching options due to the heightened cost of energy, more attractive options are beginning to resurface.
Compare energy suppliers with Uswitch
Looking to save money by switching energy providers? Make sure to search the cheapest deals on the market with Uswitch.
Should I switch to a fixed or variable energy deal?
Switching to a fixed or variable energy deal requires some research, and it’s important to consider all aspects of your plan.
A fixed energy deal, for example, might seem cheaper now but if you’re locked into a lengthy period then you could pay more for your power if wholesale prices subside in the future.
However, a fixed energy deal does provide a peace of mind that you’ll be paying a set amount regardless of how energy prices may fluctuate in the future. So ultimately it may come down to personal preference on how much risk you’re happy to take on.
Read more: Should I switch to a fixed energy deal?
Are energy prices going up or down?
Every three months Ofcom, the industry regulator, sets a new energy price cap. The energy price cap is used to stop providers from overcharging their customers on standard variable rates – and if you want to learn more about it we’ve detailed this in our guide below.
But in essence the Energy Price Cap is influenced by the price of power on the open market, and if it rises it’s a sign that energy prices are going up.
The next energy price cap is set to be implemented on 31 March. Previously, it was reviewed on New Year’s Day where it rose by £94 for the average medium-sized house per year.
Uswitch currently predicts the price cap to fall at the next review.
Read more: What is the energy price cap?
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Is there an energy price cap for businesses?
There is no energy price cap for businesses. Instead, businesses can take advantage of the Energy Bills Discount Scheme. This gives eligible businesses a per unit discount on their bills and has been running since April.
However, it is due to end next month and there are currently no plans to replace it.
Read more: What is the difference between the energy price guarantee and Ofgem’s energy price cap?
How to switch energy providers
If you want to switch energy providers, and you’ve now found a deal which works better for you, then get in touch with your new supplier.
This can be by phone, an online form, or any other way you can communicate with your supplier. Then, let them know you wish to switch to them and they’ll carry out the rest of the work.
You don’t need to get in touch with your current provider and your new supplier will cancel your contract for you. This also means you should receive your new energy without interruption.
If you’re on a smart meter, it’s possible your existing one will stop working after the switch – however your new supplier should be able to fit a new one if that’s something you want to continue using.
What can you do about higher energy costs?
If you’ve looked at switching energy providers and you’re still daunted by your prospective bills, then there are other tangible steps you can take to lower your payments.
These are listed in our guide, where one of the most significant steps you can take is to pay by Direct Debit. Here, your supplier will estimate the amount of usage you use each year and charge you a set amount each month to cover it.
Octopus Energy, an energy supplier, explained that paying by Direct Debit saves them admin costs that they can then pass on to the consumer.
Otherwise you could also look at targeted home improvements to make your property more energy efficient. Domestic & General, an appliance repair service, recently highlighted in an article on our site that spending £400 and £1,200 on insulation in a detached home can save you more than £20,000 through the course of its lifetime.
FAQ
How long does it take to switch energy providers?
According to Ofgem, switching energy suppliers should take place within three weeks.
What information do I need to switch energy providers?
When switching energy providers you’ll need the following information:
- Your postcode
- The name of your current supplier
- The name of your current energy tariff
- Your annual energy usage or costs
Can I still switch energy providers if I’m in debt?
Ofgem also said you can switch energy providers if you’ve been in debt to your supplier for less than 28 days. If you’ve surpassed this period then you need to pay off your debt first before switching.
If you have a repayment metre then you can still switch with debts of up to £500 on gas and £500 on electricity. Your new provider will pay off this debt to your old supplier and you’ll need to agree to new terms to repay your new provider.
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
