Energy Switch Guarantee: Simplified Supplier Change

Energy UK is the trade group for the UK energy industry. In 2016, they started the Energy Switch Guarantee (ESG). This program was made to help people switch energy suppliers more easily. It makes it simpler for customers to find better deals. In 2019, a record 6.4 million people changed their energy providers in the UK. This shows how the Energy Switch Guarantee helps bring more competition, lower prices, and improve customer happiness. By 2021, this number went up to over 7 million switches. This shows that the initiative keeps being successful.

What Does the Term "Energy Switch Guarantee" Mean?

The Energy Switch Guarantee is a promise from energy suppliers. They want to make it easy and stress-free for customers who want to change their energy provider. This guarantee includes 10 important commitments. These commitments help create a uniform service for people switching providers. Because of this, the energy switching process is simpler for consumers. In 2023, more than 90% of energy suppliers in the UK are joining the Energy Switch Guarantee.

The 10 Commitments of the Energy Switch Guarantee

1. Easy Change: All energy providers use the same system. This means your energy supply will not stop when you switch.
2. No Cost to Switch: Switching suppliers is free under the Energy Switch Guarantee. There are no hidden fees.
3. Quick Switch: Your switch will be done in 21 days after your new supplier gets your application. In 2022, it took an average of just 15.2 days.
4. No Home Visit Needed: Usually, you don't need a home visit unless you agree to it.
5. Supplier's Job: Your new energy supplier will take care of everything. They will contact your current supplier about the change.
6. Change Your Mind: You have 14 days to cancel the switch if you decide to change your mind.
7. No Double Billing: Your new supplier and old supplier will make sure you are not charged twice for the same energy.
8. Fast Problem Solving: If there are any issues, your new supplier will fix them quickly. In 2022, 99.7% of issues were solved within 8 weeks.
9. Final Energy Bill: Your old supplier must send your final energy bill within six weeks after the switch.
10. Getting Your Money Back: If the old supplier owes you money, they have to refund you within 14 days of giving the final bill. In 2022, most refunds happened in about 8 days.

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What Is the Process for Ensuring the Energy Switch Guarantee?

When you change energy suppliers, the Energy Switch Guarantee makes it easier. It also keeps you safe during the switch. Here are the main steps to follow:

• Compare Energy Deals: Use a price comparison website. Check unit rates, tariff types, and read customer reviews. This will help you find the best deal. In 2022, people who switched saved an average of £248 on their energy bills for the year.
• Choose a New Supplier: Pick a supplier that is part of the Energy Switch Guarantee. You can spot them by looking for the ESG logo on their website. As of 2023, more than 30 suppliers are included in this program.
• Start the Switch: Reach out to your chosen supplier. They will take care of the paperwork and will even contact your current energy supplier. In 2022, 97% of switches were started online, showing how easy it is.
• Cooling-off Period: You have 14 days to think about your new energy supply agreement. If you change your mind, you can cancel without any exit fees during this time.
• Completion: After the cooling-off period, your new energy supplier will work with your old supplier. They will make sure your electricity supply or gas supply moves smoothly. In 2022, 99.9% of switches were done without any supply interruptions.
• Final Bill and Refunds: Your current supplier will send you a final bill within six weeks. If you are due for a refund, it has to be paid within 14 days. In 2022, 98% of final bills were sent out in the six-week timeframe.

Benefits of the Energy Switch Guarantee

The Energy Switch Guarantee offers many advantages for people who change their energy suppliers.

1. Increased Competition: The guarantee encourages healthy competition among energy companies. Because of this, more suppliers are providing better rates and services to reach more customers. This helps consumers, especially those on dual fuel plans or prepayment meters, find lower prices and better energy deals. In 2022, the UK had over 50 active suppliers, growing from just 12 in 2010.
2. Lower Prices: Switching under the guarantee can result in big savings. Ofgem says customers who change energy suppliers save around £200 each year. With more competition, people can switch from standard variable tariffs to fixed rates, securing new prices and avoiding price changes. In 2022, those switching from a standard variable tariff to a fixed deal saved an average of £312.
3. Hassle-Free Switching: The guarantee removes delays and paperwork, making switching easy for customers. Typically, no home visit is required, and the new supplier takes care of communication with the current supplier. In 2022, 99.5% of switches were done without any home visit.
4. Improved Customer Service: Energy companies that are part of the Energy Switch Guarantee work to solve problems quickly. Energy UK reports that 99.2% of switches were done within 21 days in early 2020. This number improved to 99.7% by 2022.
5. Environmental Impact: The Energy Switch Guarantee motivates customers to look for renewable energy options. Many suppliers now offer green tariffs that support renewable energy projects, helping to lower carbon emissions. This change lets eco-friendly customers cut back on their carbon footprint while saving on energy costs. In 2022, 40% of switches were made to tariffs that featured 100% renewable electricity.

Does the Energy Switch Guarantee Work Effectively?

Yes, the Energy Switch Guarantee has helped make the process of changing energy suppliers better for customers. In 2022, Energy UK shared that 99.7% of switches happened within the 21-day period stated in the guarantee. This strong success rate shows that the system is reliable and works well.

The guarantee helps customers feel in charge of their energy bills. It also allows them to find better deals. In 2021, over 7 million switches were recorded. This shows that many people see the value in switching providers.

Is There a Fee for the Energy Switch Guarantee?

No, changing energy suppliers under the Energy Switch Guarantee is free. You won't find any hidden fees or extra charges. The new supplier takes care of the switching process for you. Since it started in 2016, the Energy Switch Guarantee has helped people save about £2.8 billion in total.

Be careful with third-party services that ask for fees to switch. A reliable price comparison website lets you switch for free. This way, you can keep all the savings you make.

Are All Energy Providers Enrolled in the Energy Switch Guarantee?

Not all energy companies have agreed to the Energy Switch Guarantee. But several big energy providers, like British Gas, EDF Energy, E.ON, Octopus Energy, SSE, and Shell Energy, have signed up. In 2023, more than 90% of the UK energy market is included with suppliers that support the Energy Switch Guarantee.

Before you switch, make sure your chosen supplier has signed the guarantee. This way, you can enjoy the protections and standards it provides.

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FAQs About the Energy Switch Guarantee