Choosing your energy supplier
Confidently choosing and switching energy suppliers can help you find better value, gain control over your energy experience, and avoid unnecessary costs. This guide will walk you through the process, from understanding the market to making the most of your new supplier.
Fuse Energy helps you navigate these decisions by focusing on value and control, offering a modern energy experience designed around your home. Click here to switch to Fuse Energy today.
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Understanding the UK energy market
The UK energy market operates under specific regulations designed to protect consumers and ensure fair competition. Knowing these fundamentals is the first step towards making informed choices.
The role of Ofgem
Ofgem, the Office of Gas and Electricity Markets, is The Independent energy regulator for Great Britain. It is a non-ministerial government department responsible for protecting the interests of energy consumers. Ofgem sets rules for suppliers, monitors their operations, and takes action when rules are not followed. Its primary objective is to protect consumers, promote competition, and ensure a secure and sustainable energy supply.
Fixed vs variable tariffs
When choosing an energy deal, you will encounter two main tariff types:
- Fixed tariffs: With a fixed tariff, your unit rates (the cost per unit of energy) and daily standing charges remain constant for the duration of your contract, usually between 12 and 18 months. This provides predictability for budgeting, as your price per unit will not change even if wholesale energy costs fluctuate. However, your total bill will still vary based on your energy usage.
- Variable tariffs: A variable tariff means your unit rates and standing charges can go up or down in line with wholesale energy market prices. Most households on a variable tariff are protected by the Energy Price Cap, which limits how much suppliers can charge per unit. These tariffs often offer flexibility, as they typically do not have exit fees, allowing you to switch at any time.
The energy price cap explained
The Energy Price Cap, set by Ofgem, limits the maximum amount energy suppliers can charge for each unit of gas and electricity you use, as well as the daily standing charge, if you are on a Standard Variable Tariff. It was introduced to protect consumers from being overcharged and is reviewed every three months by Ofgem. It is crucial to understand that the price cap limits the unit rate, not your total bill; your bill will still depend on how much energy you consume.
Key factors when choosing an energy supplier
Selecting the right energy supplier goes beyond just the headline price. Consider these factors to find a deal that truly suits your household.
Price and tariff structure
Beyond the unit rate, look at the daily standing charge, which is a fixed amount you pay regardless of how much energy you use. Also, check for any exit fees if you are considering a fixed tariff, as these can apply if you leave before your contract ends. Understanding your consumption patterns is key; the average UK home uses around 2,500 kWh of electricity per year.
Customer service and support
Good customer service can make a significant difference, especially if you encounter issues with billing or supply. Look for suppliers with strong customer satisfaction ratings. Some suppliers, like Fuse Energy, offer human customer support, providing peace of mind and assistance whenever you need it.
How important is customer service when choosing an energy supplier?
Customer service is crucial. While price is often a primary driver, reliable support can prevent headaches with billing, meter readings, or switching. Suppliers with responsive, accessible customer service can save you time and stress, ensuring a smoother overall energy experience.
Green energy options
Many suppliers now offer green energy tariffs, where some or all of the electricity you use is matched by power generated from renewable sources like wind or solar. While all energy goes into the National Grid, choosing a green tariff supports the growth of renewable energy generation. Check a supplier's fuel mix information to understand their commitment to renewables.
Smart meter compatibility and benefits
Smart meters measure your energy use in near real-time and send readings automatically to your supplier, eliminating estimated bills. They come with an in-home display (IHD) that shows your energy consumption in pounds and pence, helping you monitor and manage your usage. Smart meters also enable access to advanced agile pricing and time-of-use tariffs and can help you earn money if you have solar panels and export electricity to the grid.
The Radio Teleswitch Service (RTS) for legacy meters is being phased out, with the signal switch-off starting on 30 June 20251. If you have an RTS meter, your current supplier will need to replace it with a smart meter, usually at no cost, before you can switch to a modern tariff.
How to compare energy suppliers
Comparing energy suppliers effectively requires understanding your own usage and knowing where to look for reliable information.
Using comparison websites effectively
Comparison websites are a good starting point for finding different tariffs. They allow you to input your usage details and compare deals side-by-side. Ensure you use an Ofgem-accredited comparison site, as these adhere to a code of practice that ensures transparency and accuracy in their listings.
Checking customer reviews and ratings
Before committing to a new supplier, check independent customer reviews and ratings. Organisations like Citizens Advice publish quarterly data ranking suppliers based on factors such as complaints received, contact waiting times, and billing accuracy. These provide valuable insights into a supplier's real-world performance.
Understanding your energy usage
Your energy bill will typically show your annual or monthly energy consumption in kilowatt-hours (kWh). Knowing this figure is crucial for an accurate comparison, as it allows you to see how different tariffs would impact your actual costs. The average UK home uses around 2,500 kWh of electricity per year.
The energy switching process step-by-step
Switching energy suppliers is designed to be straightforward and hassle-free, thanks to industry regulations.
Gathering necessary information
To switch, you will typically need your postcode, your current supplier's name, your current tariff, and an estimate of your annual energy usage (in kWh), which can usually be found on a recent bill.
Initiating your switch
Once you have chosen a new supplier, they will handle most of the switching process for you. The Energy Switch Guarantee, a voluntary set of commitments by energy companies, ensures a quick, secure, and hassle-free transfer. Under Ofgem's Faster Switching rules, most domestic energy switches are completed within 5 working days2. Your energy supply will not be interrupted during this time.
What happens after you switch?
After agreeing to a new contract, you have a 14-day cooling-off period during which you can cancel without penalty. Your new supplier will contact your old one to arrange the transfer. You may be asked for a final meter reading on the day of the switch to ensure accurate billing from both suppliers. Any credit owed by your old supplier will need to be refunded; you should contact your previous supplier to arrange this.
Addressing common switching issues
If your switch takes longer than 5 working days due to your new supplier's fault, you may be entitled to £40 compensation3. If you encounter any problems, contact your new supplier first. If the issue is not resolved, you can escalate your complaint to the Energy Ombudsman.
Making the most of your energy supplier
Once you have switched, actively managing your energy can help you maintain control and value.
Monitoring your usage and bills
Regularly check your energy usage and bills. Many suppliers offer online accounts or apps where you can track your consumption, helping you understand your energy habits and identify areas for potential savings.
Utilising supplier apps and tools
Modern energy suppliers often provide digital tools and apps that offer insights into your energy usage, allow you to submit meter readings, and manage your account. These tools can empower you to make informed decisions about your energy consumption.
When to consider switching again
The energy market is dynamic, with tariffs and prices changing regularly. It is a good idea to review your energy deal annually or when your fixed-term contract is nearing its end. If you are on a fixed tariff, you can usually switch without an exit fee if you are within 49 days of your contract ending. Regularly comparing deals ensures you continue to get the best value and maintain control over your energy costs.
Ready to take control of your energy bills? Fuse Energy offers clear pricing, real-time usage data through our app, and human customer support to help you manage your home's energy efficiently. Switching is quick and easy, so you can start enjoying a smarter energy experience today. Click here to switch to Fuse Energy.
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Disclaimer
For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.