Compare Energy Prices: Why Do People Delay Switching?

Many people in the UK could save quite a bit each year if they move from their old supplier to a new one. Energy prices are high now, and there are new fixed rate tariffs. Better online tools also help you look. Still, a lot of homes do not check other energy deals. They stay with their old supplier. Many people keep using standard rate tariffs without looking at what other choices are in the market.

Knowing why this happens and finding ways to fix these problems can help you choose the best time to compare energy prices. You can save money on your energy bills. It can also help your home use less energy.

Why Do Millions of UK Homes Delay When They Compare Energy Prices?

In March 2025, about 344,792 UK households did an energy switch. This amount is 62% higher than in February. It is also up by 84% from this time last year. A lot of people wanted to switch because Ofgem said there will be a 6% rise in the energy price cap in April 2025. The price cap and the news about the energy price cap made more people think about making an energy switch.

By June 2025, the number of people moving to a new provider dropped once more. At that time, there were just 228,000 people making the switch. This was the lowest number in the year. Prices did not go up or down, so most households did not feel they had any reason to change.

This shows that people often wait until prices go up before they take any steps. They do not look for deals all the time.

Studies say that about 81% of people feel good about their energy supplier. Many people could get a better price if they use an online energy comparison. But many just stay with their current deal. This is known as status quo bias. These people feel like they do not have to make a change, or they see it as risky.

How Does the Energy Price Cap Influence Switching Behaviour?

The Ofgem energy price cap sets the top price for energy. It controls the most a supplier can ask for each unit. It also covers the standing charge. People who have default or variable rate tariffs pay prices based on this cap. Energy suppliers can’t ask for more than the limit set by the energy price cap for a variable rate or rate tariffs.

For October to December 2025, the set limit means most people will pay about £1,755 for the year. This amount is for those who pay by direct debit and use dual fuel. The cost is based on how much energy people use on average. That is 2,700 kWh of electricity and 11,500 kWh of gas in a year.

When the cap rises, consumers are more likely to compare energy prices and consider switching. However, when prices are steady or falling, many people delay, assuming they are already on a fair deal.

This pattern shows that many people try energy switch when the price cap changes. People also watch for price rises in the news. When the news talks about price rises, they start to check the price cap more and may think it is time for an energy switch.

The Psychology Behind Staying With Your Current Supplier

Even if you see potential savings of £200 to £400 every year, most people do not make the switch soon. Most of the time, this happens because of what is in the mind.

These barriers make a lot of people stay on standard variable tariffs. Many households pay more for their energy each year than they have to.

What Are the Main Barriers to Switching Energy Suppliers in 2025?

The energy market has over 20 suppliers. There are also hundreds of rate tariffs out there. This makes it hard for people to look at the offers and compare them quickly. A lot of people find some common things get in the way. These things stop them from switching to a new plan or another supplier.

• A lot of people feel lost when it comes to how fixed and variable rate tariffs work.
• Some feel scared that their energy supply might be cut off when they start the switching process.
• Many of us feel bad about what exit fees we will have to pay if we leave the old supplier.
• It can be difficult to get a good look at the difference between dual fuel and single fuel energy deals.
• Some people who have a prepayment meter think they cannot switch or find better and cheaper rates.
• Older people or those who don’t use the internet may not get the best offers, since many deals are only online.

Ofgem’s Energy Switch Guarantee is there to help you when you decide to switch to a new supplier. It makes sure your energy supply does not stop when you change over. In most cases, the energy switch takes less than five working days. Your old supplier will read your meter at the end.

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Why Do Households Underestimate Potential Savings?

Many people think that changing your energy supplier will not save you much money. But the market averages and information from Ofgem show that the typical household can cut their energy bills. If you move from a standard variable tariff to a fixed rate tariff that costs less, you could save between £200 and £400 each year.

If you use a lot of energy in your home or have dual fuel, you can save even more.

Even though there have been price hikes, you can still get good savings. The good news is that most comparison tools use the energy price cap when they work out your deal. So, your potential savings will be clear and based on the real price cap rates. This helps you know what you will get.

Compare energy prices to see how much you could save on your next energy deal →

How Does the Switching Process Work in the UK?

Switching to a new energy supplier can be easy for everyone. You do not need to speak to your old supplier. You also do not have to worry about losing your energy supply.

1. First, you have to enter your postcode and your usage details into a price comparison tool.
2. Next, check out the energy tariffs like fixed or variable rate options.
3. Choose the deal that is best for you and say yes to make the switch.
4. The new supplier will get in touch with your old supplier to move your account.
5. Give a final meter reading so you can get an accurate gas and electricity bill.

You will get your new tariff details and the date it will start in writing. If you want to change your mind, you have 14 days to do so. This is called a cooling-off period and is part of Ofgem’s Energy Switch Guarantee. The energy switch guarantee is there so you feel safe about your new tariff and your choice to do an energy switch.

How Digital Access Affects Energy Switching

About 70% of energy changes now take place online. A lot of people, though, still do not use these sites. Many older people feel this way. Some do not feel good about the internet. There are households that do not have a way to get on comparison websites. Some do not feel sure when they use them.

This digital exclusion means that many people stay on higher energy tariffs. People who have smart meters or use online accounts can see their energy usage in an easier way. They also get better quotes for the energy they use.

Smart meters tell you the actual amount of energy you use in kilowatt hours (kWh). This makes it easy for you to see just how much energy you use. You can also use this to compare your energy use over time.

Compare energy prices using your real usage data to find the best rate tariffs →

When Is the Best Time to Compare Energy Prices and Switch?

The best time to look at and compare energy prices is before your current deal ends or when the energy price cap goes up. A lot of people like to switch between February and May. Some also choose to do this in early autumn, right before the winter bills get high because the energy price cap is going up.

Looking at these times helps you get a new tariff before prices go up. This way, you make sure to lock in the deal before the rates change.

You can simply switch online when you find a better option. The new supplier will take care of the rest of the hassle. They make things easy for you.

Why Smaller Energy Companies Still Face Trust Barriers

In early 2025, there were only 15% of people who quit big companies and went to smaller ones for their energy supply. A lot of people feel unsure to change, even when energy prices with these new brands are not as high. People would like better energy prices, but they do not feel ready to switch if they do not know the brand well.

Some people feel worried about the reliability of the moving service. Money issues also make them feel unsure. Customer service is important too. All these things can make people not want to move.

All suppliers that have a license in Great Britain must follow the Ofgem Confidence Code. The code helps to make the prices fair for all. It gives you simple terms, so you know what you get. You can leave anytime with no extra fees or charges.

If you want to do an energy switch to a new supplier, make sure the process is safe. First, look to see if that supplier is part of the Energy Switch Guarantee. Also, check that Ofgem has approved them. This way, you know the switch will be simple and fair for you.

How Energy Tariffs and Payment Methods Affect Switching

The way you pay for your plan can change how much it costs. It can also affect which offers you get.

People who pay by direct debit can get good energy tariffs. The best deals found online and fixed rate offers are often included. A lot of people who use direct debit may get offers that other people do not have.

If you move to a new property or have a prepayment meter, you can still switch to a new supplier. The new supplier will help you change or upgrade your meter if you need to.

Does Switching Help Reduce Carbon Footprint?

Yes. Many companies now have electricity deals and gas plans that use renewable energy. This energy can come from things like solar, wind, or water power.

If you choose an energy supplier that offers renewable energy, you can help lower the carbon footprint of your home. You might also get a better price with these plans. Some dual fuel deals come with green gas certificates. These certificates help to cut down the emissions from heating.

In 2025, over 43% of the UK’s electricity will come from renewable sources. So, choosing green energy is a good idea. It can help you save money. It is also better for the planet.

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How to Compare Energy Prices for Your Home

To find the best deals:

1. Get your latest meter readings or the data from your smart meter.
2. Go to a trusted energy comparison site. Put in your postcode and how much you use each year in kWh.
3. Look at what is there for fixed rate, variable rate, and dual fuel tariffs.
4. Check the average annual cost. See if there are any exit fees before you choose.
5. Pick your new tariff. Let your new supplier take care of the switch.

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FAQs About Comparing and Switching Energy Suppliers