Your Legal Rights for Switching Energy Suppliers

Customer Rights in Energy Switching
September 27th, 2024
Your Legal Rights for Switching Energy Suppliers

Content in this article

In the UK, Ofgem, which is the energy regulator, protects your legal rights when you switch energy suppliers. These protections help make sure the process of switching suppliers is easy and fair. It does not matter if you are on a fixed tariff, a variable tariff, or if you are using a smart meter or a prepayment meter.

Key legal rights include:

  • No disruption in energy supply: You will keep using electricity or new gas suppliers without any change during the switch.
  • Cooling-off period: After you agree to switch to a new energy provider, you have 14 days to change your mind. You can cancel without any fees during this time.
  • No exit fees in the final 49 days: If you have a fixed-term tariff, you won't pay exit fees if you switch in the last 49 days of your contract.
  • Final bill accuracy: Your old supplier must give you an accurate latest bill based on the last electric meter reading. This way, you will only pay for energy used until the switch date.

Ofgem says that more than 5.5 million homes changed their energy suppliers in 2021. This shows how flexible the UK’s energy market is.

Switching energy suppliers can help you save on energy costs. However, it's important to protect your rights while doing it. Here are some tips to make sure your switch goes well and is legally safe:

  • Start with a price comparison: Use price comparison websites to check different tariffs. This helps you find the best deal. Compare key things like unit rates, standing charges, and whether the tariff is fixed or variable.
  • Check for exit fees: If you are moving from a fixed-term contract, find out if there are any exit fees. If you are in the last 49 days of your contract, you do not have to pay these fees by law.
  • Provide meter readings: Before your switch is complete, make sure to give an accurate meter reading to both your old and new supplier. This ensures your final bill is correct and that there are no extra charges.
  • Cooling-off period: After you agree to switch, you have 14 days to change your mind without any penalties.

By doing these steps, you can protect your rights. It will help your energy switch to go well.

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Exit fees are costs that energy companies might charge if you cancel a fixed-term contract before it ends. But UK law gives good protection to consumers. This can help you avoid these fees in many cases.

Here's what you need to know about exit fees:

  • Exit fees only apply to fixed-term tariffs: If you have a variable tariff, you will not face any exit fees when switching.
  • Final 49 days rule: According to Ofgem rules, if you are in the last 49 days of your fixed-term contract, your supplier cannot charge you an exit fee. This allows you to switch without any penalties during this time.
  • Transparency: By law, suppliers must clearly reveal any exit fees in their contracts. This way, you will know what to expect.

On average, exit fees are between £30 and £60 for each fuel type, like electricity or gas. This depends on the supplier and the contract you have. Make sure to check your contract end date. This will help you avoid extra charges.

If you use a smart meter or a prepayment meter, your rights when changing suppliers are a bit different. However, UK law still protects you equally.

Smart Meters:

  • Compatibility: When you change suppliers, your smart meter should still work in smart mode. But if the new supplier does not support your current smart meter, it could go back to prepayment mode. If that happens, you will have to manually send in your meter readings until the supplier updates the system.

Prepayment Meters:

  • Switching with debt: If you owe less than £500 on your prepayment meter, you can change suppliers. Your debt can move to your new supplier under the Debt Assignment Protocol. This rule helps people in debt find lower rates.

Prepayment customers usually get good deals when they change suppliers. This is especially true if they choose to pay with direct debit. In 2021, homes using prepayment meters saved about £150 a year by switching their suppliers.

UK law offers protections when you switch energy suppliers.

These protections help make the process clear and smooth.

  • 21-day switch period: Energy suppliers must finish the switch in 21 days after they get your details. This does not count the 14-day cooling-off period.
  • Erroneous transfers: If you are wrongly switched to the wrong supplier, you can legally go back to your original supplier without facing any penalties. Your energy supply will stay on during the correction process.

In 2022, Ofgem said that 1 in 100 switches had mistakes. However, suppliers must fix these errors fast and without any cost to the customer.

UK Law During Energy Supplier Transfers

If you rent your home, you usually have the right to change energy suppliers. Here is what tenants should know:

  • Tenants' right to switch: If you pay the energy bills, you can change your supplier. It's a good idea to tell your landlord, especially if your tenancy agreement says there is a preferred supplier.
  • Shared utilities: If your landlord pays the energy bills and adds them to your rent, you may need their approval to switch suppliers.

For people who are moving into a new place, it usually means they will get a standard variable tariff. This type of tariff often costs more. To save money, you can switch to a fixed-rate tariff. This change can lower your energy costs.

Switching right now, while you have energy debt, can be done. However, there are some legal rules to keep in mind.

  • Debt under £500: If you owe less than £500 and have a prepayment meter, you can change to a new supplier. The debt will go to your new supplier.
  • Larger debt: If your debt is over £500 or you do not use a prepayment meter, your current supplier might stop you from making the switch until you pay off the debt. Talk to your supplier to set up a payment plan.

In the UK, about 10% of homes have energy debt. However, changing suppliers can still help you find a better deal. This is especially true for people with prepayment meters.

When you change to a new energy tariff, either a fixed one or a variable one, there are laws to protect you. These laws make sure that you are treated fairly.

  • Clear contract terms: The new supplier has to explain the terms of your new tariff clearly. This includes unit rates, standing charges, and any extra fees.
  • Correct billing: The new supplier must make sure that the billing is correct, especially if you are changing from a smart meter or a prepayment meter.

These legal protections make sure you get a fair deal. They also help ensure that your bills show your energy use correctly.

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Consumers in Northern Ireland have a few different rules when they want to switch energy suppliers. However, the main legal protections are still the same.

  • Right to switch: You can change your energy supplier. This change should happen within 21 days, just like in other areas of the UK.
  • Erroneous transfers: If you get transferred by mistake, you can go back to your original supplier without any fees.

What Are Your Rights if You Experience Poor Customer Service During a Supplier Switch?

If you have bad customer service when changing energy suppliers, UK law offers several ways to get help:

  • Complaints process: You can file a complaint with your energy supplier if there is a delay in switching, if your bill is wrong, or if you have other problems. Energy suppliers have to reply within 8 weeks.
  • Energy Ombudsman: If your complaint isn't fixed, you can take it to the Energy Ombudsman. They will help you settle the issue.

In 2021, the Energy Ombudsman got more than 50,000 complaints about switching suppliers. The biggest problems were delays in switching or mistakes in billing.

Can I switch suppliers if I have a smart meter or prepayment meter?

You can change your energy supplier if you have a smart meter or are on prepayment mode. Just make sure to ask the new energy provider if they can read your meter. If they can’t, your smart meter may go back to manual mode. This will mean you have to take readings yourself.

What happens if I’m switched to a new supplier by mistake?

If you make a wrong transfer, you can go back to your old electricity supplier without any penalties. Your energy supply will stay on while you fix the issue. You should also get a welcome letter from your old supplier.

Can I switch energy suppliers if I have an outstanding bill?

Yes, you can change suppliers if you owe less than £500 on a prepayment meter. If you have a bigger debt or are on a direct debit, you might need to pay off the debt first. You may also need to create a payment plan with your current energy company.

What should I do if I want to switch to get a better deal?

The first step is to use a price comparison site. This helps you find the best deal. After that, contact the new supplier to start the switching process. You will need to share your bank details. Also, provide information about your recent energy use. This includes readings from your electric meter.

What if I receive poor customer service during the switch?

If you have problems with the switching process, reach out to the supplier first. If that doesn’t solve the issue, you can contact Citizens Advice consumer service. When picking a new provider, look at the customer service ratings of suppliers like British Gas or Ovo Energy. These ratings can help you make a good choice.

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