Scottish households are being urged to think carefully before switching energy suppliers, as rising bills under the Ofgem price cap push more people to search for cheaper deals. Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, has issued a seven-step checklist to help customers navigate the complex energy market and avoid unexpected fees.
Gas and electricity costs increased on New Year’s Day, which could mean many households are weighing up the potential savings of switching suppliers. However, the process can often be confusing, with some customers risking additional charges if they make a change without fully understanding the implications.
Hazel Knowles, senior project lead at Advice Direct Scotland, said: “With the cost of energy rising again under the Ofgem price cap, it is not surprising that many households are looking for ways to keep their bills down. Switching suppliers can be beneficial for some people, but it depends on the circumstances, and it is important to consider all the options before rushing into anything.
“Our seven tips are designed to ensure that people arm themselves with all the key information they need before looking into switching, so they can make an informed decision.
“We know that thousands of people across the country are worried about their energy bills, but the most important thing to remember is that nobody should struggle alone, and help is available.
Seven things to check before switching energy supplier
Advice Direct Scotland has identified seven key considerations for anyone planning to switch. The organisation is also urging those worried about their bills or struggling with energy-related debt to contact its experts for free, impartial advice.
Whether switching suppliers will save someone money depends on their individual circumstances. Below are some key things to think about before making a decision.
Understand your current plan
Customers should review their annual energy consumption in kilowatt hours (kWh), as this helps with comparing tariffs. They should also establish what kind of tariff they are on.
Tariffs can vary and include options such as fixed rate, variable, and economy 7 or 10, which have different energy rates at peak and off-peak times. Households should ensure that their current set up and meter is compatible with their new supplier.
Research new suppliers and tariffs
When you’re ready to look for a new deal, it’s important to use an Ofgem-accredited price comparison tool. There is a list on the Ofgem website, available here.
When considering different suppliers, look for reviews or star ratings for customer service and reliability as well as price. You should also consider what matters most to you – is it price, renewable energy options, or fixed-rate stability?
Customers should also compare daily standing charges as well as unit rates, as these can vary depending on the supplier and the type of tariff.
Check eligibility and benefits
Make sure your new supplier is part of any government schemes you rely on, like the Warm Home Discount.
If you have a smart meter, check it will work with the new supplier. If it doesn’t, you might end up with inaccurate readings and estimated bills.
If you owe money to your current supplier, you can still switch if the debt is less than 28 days old. The amount owed will be added to your final bill. But if you’ve been in debt for more than 28 days, you’ll need to clear it before switching. The exception is for prepayment meter customers, who can switch even if they owe up to £500 for gas and £500 for electricity.
Understand the switching process
Switching usually takes 21 days, including the cooling-off period, so any change will not be immediate. You have 14 days to cancel a switch after signing up if you change your mind.
If your new supplier is signed up to the Energy Switch Guarantee, which aims to make the process as fast and simple as possible, you should be moved onto your new deal within five working days.
Don’t forget early exit fees
Customers should check if their supplier charges an exit fee for switching before the end of the contract. In some cases, this cost might outweigh the benefits of moving to a new deal.
If you can switch penalty-free, you should also ensure that your old supplier provides a final bill and refunds any credit you might be owed.
Be aware of scams
As more people consider switching suppliers, there is inevitably an opportunity for scammers to take advantage. Always steer clear of unsolicited offers made over the phone or at your door.
You should use trusted channels for switching and be cautious of deals that seem unrealistically cheap. If it sounds too good to be true, it probably is.
Consider your future energy needs
Be aware that your energy use – and potentially your income level – might change in the future and you might not always use the same amount from year to year.
Ideally, you should choose a plan that aligns with what you can comfortably afford and does not lock you in for too long before you can switch again without a penalty.
Energyadvice.scot provides free, impartial, and practical advice on energy bills to anyone in Scotland. Advisers can be contacted at www.energyadvice.scot and on 0808 196 8660, Monday to Friday, 9am to 5pm.