When Can I Switch Energy Suppliers and How?
Seamlessly switch energy suppliers. This guide clarifies when and how to navigate the process for a smooth transition to a new provider.
Switching energy suppliers can offer residential customers an opportunity to find more favorable terms for their electricity or natural gas service. This process allows consumers to potentially secure lower rates, access plans with features that better suit their energy usage habits, or choose suppliers that align with their preferences, such as those offering renewable energy options.
Reviewing Your Current Energy Agreement
Energy plans commonly fall into two main categories: fixed-rate and variable-rate tariffs. A fixed-rate plan locks in your price per kilowatt-hour (kWh) for a set duration, typically ranging from 6 to 36 months, providing predictable energy supply costs, although your total bill will still vary with usage. In contrast, a variable-rate plan means your price per kWh can change monthly based on market conditions, which may offer flexibility but also introduces unpredictability in billing.
Identifying your contract end date is important because switching before this date, especially with a fixed-rate plan, often incurs early termination fees. These fees are charged by suppliers to recover costs if you break your contract prematurely, and typical amounts can vary, sometimes being a flat fee or calculated based on the remaining contract term. Your energy bill or online account with your current provider usually displays this date. Furthermore, some contracts may include a notice period, requiring you to inform your current supplier in advance of your intention to switch.
Utilities are often required to notify customers of their contract expiration, typically between 30 and 60 days before the end date. Missing this window can result in being automatically rolled onto a more expensive variable-rate plan. Reviewing these details helps you avoid unexpected charges and ensures a smooth transition to a new provider.
Addressing Common Obstacles to Switching
A common barrier to switching energy suppliers is having outstanding debt with your current energy supplier. Generally, you cannot switch providers if you have a significant overdue balance, as suppliers can place a “switch hold” on your account.
To overcome this, you typically need to pay off the outstanding debt in full. Alternatively, some suppliers may allow a switch if you agree to a payment plan or if the debt is less than 28 days old, though the debt will be added to your final bill. For customers with prepayment meters, switching rules can differ; if the debt is below a certain threshold, often around a few hundred dollars for gas and electricity, it might be transferred to the new supplier to be paid off through the new meter. However, higher debts on prepayment meters usually require full repayment before a switch.
New tenants or homeowners might initially be on a “deemed contract” with the existing energy supplier at the property. This is a default arrangement until a formal contract is established. While you can typically switch from a deemed contract soon after moving in, it is important to confirm the current arrangement and ensure any initial bills are settled.
Steps for a Successful Switch
Begin by finding a new energy deal that aligns with your needs, which can be easily done using online energy comparison websites. These platforms allow you to compare rates, contract terms, and renewable energy options available in your area by simply entering your ZIP code.
After selecting a new supplier and plan, initiate the switch by contacting the chosen provider, typically through their website or a phone call. The new supplier will handle most of the transfer process, including notifying your current utility company. As part of the transition, you will likely need to provide a meter reading to your new supplier, and a final reading will be taken by your old supplier to generate your last bill.
Following the initiation of the switch, a cooling-off period, often around 3 to 7 business days, is usually provided during which you can cancel your new contract without penalty. The transition period itself typically takes between 10 to 17 days, during which there should be no interruption to your energy service. You will receive a final bill from your old supplier, which should be paid, and a welcome pack from your new supplier detailing your account information and terms.