How to Switch Energy Supplier in the UK: Timelines, Exit Fees, Debt Rules and What Ofgem Guarantees

ENERGY GUIDE · SWITCHING

How switching works step by step

Switching energy supplier in Great Britain is a regulated process that takes up to 5 working days from the date your new supplier confirms the switch. You do not need to contact your old supplier; the new one handles the transfer, and your supply is never interrupted. You have a 14-day cooling-off period after agreeing to a new deal.

The process begins with comparing tariffs from different suppliers. You can use Ofgem-accredited comparison sites or contact suppliers directly. Once you choose a deal and agree to it, the new supplier initiates the switch. Under Ofgem's Faster Switching rules, the entire process must be completed within 5 working days. This includes the transfer of your meter point, which is identified by your unique Meter Point Administration Number (MPAN) for electricity and Meter Point Reference Number (MPRN) for gas. You can find these numbers on your current bill.

During the switch, your energy supply continues without any interruption. Your new supplier will contact your old supplier to arrange the transfer. Your old supplier will send you a final bill within 6 weeks of the switch date. This bill should reflect your actual usage up to the day of the switch, not an estimate. If you are on a credit meter, any credit balance will be refunded to you automatically, usually within 10 working days after your final bill is issued. If you owe money, you will need to pay it as per the terms of your final bill.

You can switch even if you are in the middle of a fixed-term contract, but you may have to pay an exit fee. The new supplier will inform you of any exit fees before you commit. You also have a 14-day cooling-off period after agreeing to a switch. If you change your mind within this period, you can cancel without penalty. After the cooling-off period, the switch proceeds automatically. If your new supplier fails to complete the switch on time, you may be entitled to compensation under Ofgem's Guaranteed Standards.

Exit fees and when a fixed deal is worth leaving

Exit fees are charges applied if you leave a fixed-term energy tariff before its end date. Whether it is worth paying depends on the arithmetic: if your potential savings over the remaining term exceed the exit fee, switching may be financially sensible. Ofgem's rules require suppliers to notify you of exit fees before you switch, and there is a 49-day window before your tariff ends when you can exit without penalty.

Exit fees vary by supplier and tariff. They are typically charged per fuel, so if you have dual fuel, you may pay two fees. For example, a fee of £30 per fuel means a total of £60 to exit. To decide if leaving a fixed deal is worthwhile, calculate your annual consumption and the difference in unit rates between your current tariff and the new one. Multiply the unit rate difference by your annual usage to estimate annual savings. Then compare that to the exit fee plus any other costs, such as a new connection fee if applicable.

If you are within 49 days of your fixed tariff's end date, you can switch without paying an exit fee. This window is designed to allow you to shop around before your current deal ends. After the 49-day window, if you switch before the end date, you will be charged the exit fee. Some suppliers may waive the fee if you are switching to another tariff with the same supplier, but this is not guaranteed.

When comparing a fixed deal to a variable tariff, consider the current energy price cap. The cap, set by Ofgem, limits the maximum price per unit for default tariffs. If the cap is rising, a fixed deal might protect you from increases, but if the cap is falling, a variable tariff could be cheaper. The current cap is £1,862 a year for a typical dual-fuel household, but this changes every quarter. You should check the latest cap rate on the Ofgem website before making a decision. There is no one-size-fits-all answer; it depends on your usage, the tariffs available, and your risk tolerance.

Switching with debt, on prepayment or in a rented home

You can switch energy supplier if you owe money on your current account, provided the debt is less than 28 days old and you have not had a debt repayment plan in place for more than 28 days. If you are on a prepayment meter, you can switch even with debt, as long as the debt is under £500 for gas and £500 for electricity. Tenants have the right to choose their supplier, and landlord consent is not required for the switch itself.

Ofgem's rules state that you cannot be blocked from switching if your debt is less than 28 days old. This means that if you have an outstanding balance from a recent bill, you can still switch. However, if you have a debt that is older than 28 days, you may need to clear it or set up a Debt Assignment Plan (DAP) with your current supplier. A DAP is a formal agreement to repay the debt through your new supplier. Under a DAP, your new supplier will take over the debt collection, and you will repay it through your energy bills. This allows you to switch even with older debt, but you must agree to the DAP before the switch.

For prepayment meter customers, the rules are slightly different. You can switch with a debt of up to £500 for each fuel. If your debt exceeds this amount, you will need to reduce it before switching. Prepayment meters are often used by households in debt, but Ofgem ensures that switching is still possible within these limits. If you are on a prepayment meter and want to switch, your new supplier will install a new meter or reprogram your existing one to work with their tariffs.

In rented accommodation, you have the right to choose your energy supplier, regardless of what your tenancy agreement says. Landlords cannot force you to use a specific supplier, and they do not need to give consent for you to switch. However, if you are responsible for paying the energy bills, you can switch. If your landlord pays the bills, then they are the account holder, and you would need their agreement. Some tenancy agreements may include clauses about energy suppliers, but these are not legally binding if you are the bill payer. Always check who is the account holder before initiating a switch.

Smart meters, tariffs and time-of-use

Smart meters are not a barrier to switching. If you have a SMETS1 meter, it may lose smart functionality after switching, but your new supplier should upgrade it to SMETS2 within a reasonable time. SMETS2 meters remain smart after switching. Smart meters enable time-of-use tariffs, such as Economy 7 or EV tariffs, which offer cheaper rates at off-peak times.

SMETS1 meters are the first generation of smart meters. They were installed before 2018 and sometimes lose their smart functionality when you switch suppliers, because they use a different communications network. This means they may revert to being 'dumb' meters, requiring manual readings. However, the Data Communications Company (DCC) has been upgrading SMETS1 meters to connect to the central network, which allows them to remain smart. If your SMETS1 meter is not upgraded, your new supplier is obligated to arrange an upgrade to a SMETS2 meter, which is the current standard. SMETS2 meters work with all suppliers and maintain smart functionality.

Smart meters allow you to access time-of-use tariffs, which charge different rates at different times of the day. For example, Economy 7 gives you cheaper electricity at night, typically for seven hours. This can be beneficial if you use electricity during off-peak hours. Electric vehicle (EV) tariffs are designed for EV owners, offering very low rates overnight for charging. These tariffs require a smart meter to track usage accurately. If you switch to an EV tariff, your supplier will ensure your smart meter is compatible.

Export tariffs are also available for households that generate their own electricity, such as through solar panels. These tariffs pay you for the electricity you export to the grid. Smart meters can measure export, but you may need a separate export meter. When switching suppliers, you can choose a tariff that includes an export rate. The availability of these tariffs varies by supplier, and the rates are not regulated by Ofgem. Always check the terms of any time-of-use or export tariff before switching to ensure it suits your usage patterns.

What Ofgem guarantees if it goes wrong

Ofgem's Guaranteed Standards of Performance set out the minimum service levels you can expect from your energy supplier. If a switch goes wrong, for example, if it takes longer than 5 working days, you are entitled to compensation of £30 per fuel. If your supplier fails to meet other standards, such as providing a final bill within 6 weeks, you may also be due compensation.

The Guaranteed Standards cover various aspects of service, including switching times, billing accuracy, and complaint handling. If your switch is delayed beyond the 5-working-day target, your new supplier must pay you £30 per fuel, so £60 for dual fuel. This payment is automatic; you do not need to claim it. If your old supplier fails to send a final bill within 6 weeks, you may be entitled to £30 per fuel as well. These payments are designed to incentivise suppliers to meet their obligations.

If you believe your switch was done without your consent, this is an 'erroneous transfer'. In such cases, Ofgem requires suppliers to rectify the mistake quickly. You should contact your original supplier, who can initiate a reversal of the switch. You are not liable for any charges from the new supplier if the transfer was erroneous. If the issue is not resolved, you can complain to the supplier directly. They must respond within 8 weeks. If they do not resolve the complaint to your satisfaction, you can escalate it to the Energy Ombudsman, who has the power to make a binding decision.

Ofgem also guarantees that you will not be left without a supply during a switch. If your supply is interrupted due to a switching error, you may be entitled to compensation. The exact amounts are set out in the Guaranteed Standards, which are updated periodically. You can find the current rates on the Ofgem website. If you have a complaint, keep records of all communication with your supplier. The Energy Ombudsman is free to use and can award compensation up to £10,000. Ofgem's role is to regulate the market, but it does not handle individual complaints directly; you must go through the supplier and then the Ombudsman.

Fixed vs variable in the current cap period

The current energy price cap is £1,862 a year for a typical dual-fuel household paying by direct debit. This cap applies to default or variable tariffs. Fixed tariffs are not capped, but they offer price certainty for a set period. The cap is set to change in October, so you should consider whether a fixed deal is right for you based on your usage and the market outlook.

Variable tariffs, also known as default tariffs, are subject to the energy price cap. This cap limits the maximum amount suppliers can charge per unit of gas and electricity, as well as the standing charge. The cap is reviewed every three months by Ofgem. The current cap of £1,862 is effective from July to September 2024. In October, the cap will change, and it may go up or down depending on wholesale energy prices. If the cap rises, variable tariffs will become more expensive. If it falls, they will become cheaper.

Fixed tariffs lock in a unit rate for a set period, typically 12 or 24 months. They are not subject to the cap, but they must be priced competitively. When the cap is high, fixed deals may be cheaper than variable, but when the cap is low, fixed deals may be more expensive. The decision to fix depends on your view of future price movements. If you expect prices to rise, fixing could save you money. If you expect prices to fall, staying on a variable tariff might be better. There is no guaranteed outcome, and you should not make a decision based on speculation alone.

When comparing fixed and variable tariffs, consider the exit fees. Fixed tariffs often have exit fees if you leave early, while variable tariffs do not. If you choose a fixed deal and the cap falls, you may be stuck paying higher rates unless you pay the exit fee to switch. Conversely, if the cap rises, you are protected. The current market situation is uncertain, and Ofgem advises consumers to shop around. You can use comparison sites to see the best deals available. Always check the terms and conditions, including any exit fees, before committing. The cap is a safety net, but it does not guarantee the cheapest tariff.

How long does it take to switch energy supplier?

How long does it take to switch energy supplier?

Under Ofgem's Faster Switching rules, a switch takes up to 5 working days from the date your new supplier confirms the transfer. You have a 14-day cooling-off period after agreeing to a deal, during which you can cancel without penalty. The supply is never interrupted.

Can I switch energy supplier if I owe money?

Can I switch energy supplier if I owe money?

Yes, you can switch if your debt is less than 28 days old. For older debt, you may need to set up a Debt Assignment Plan (DAP) with your new supplier. On prepayment meters, you can switch with debt up to £500 per fuel.

Do I have to pay an exit fee to switch?

Do I have to pay an exit fee to switch?

Exit fees apply if you leave a fixed-term tariff before its end date. However, if you are within 49 days of the tariff's end date, you can switch without paying a fee. Always check your contract terms.

Will my smart meter work after switching?

Will my smart meter work after switching?

SMETS2 smart meters work with all suppliers and remain smart after switching. SMETS1 meters may lose smart functionality, but your new supplier should upgrade them to SMETS2. Until then, you may need to submit manual readings.

What is the energy price cap right now?

What is the energy price cap right now?

The current energy price cap is £1,862 a year for a typical dual-fuel household paying by direct debit. This cap applies to default variable tariffs and is reviewed quarterly by Ofgem. The next change is due in October.

LAST REVIEWED 3 SEPTEMBER 2026