With energy prices being so high, many customers are looking for ways to lower their bills. The best way of doing this is to switch energy providers and find a better deal.
In this post, we take a look at what to do if your energy supplier goes bust. We then take you through switching your carrier step by step, followed by answers to some frequently asked questions. Read on to learn more.
What To Do If Your Energy Supplier Goes Out Of Business
Due to the current rises in energy prices, there is a risk that many smaller energy companies will go bust. Fortunately, Ofgem, the energy regulator, has put rules in place to protect customers, should carriers go under.
If your carrier goes out of business, start by taking a meter reading. This way, you can tell Ofgem your existing energy use so that they can accurately transition you onto a new tariff.
Then just wait. Ofgem will begin processing your transfer to a new supplier on your behalf. The new supplier will then send you all the relevant details about your new energy agreement in the post.
Once you complete the switch to the new supplier, get in touch with them to discuss the deal they have put you on. Most will place you on a variable tariff which is usually the most expensive, per unit of energy. Ask to switch to a cheaper tariff or shop around for a better deal.
How To Switch Energy Suppliers
Thanks to modern price comparison websites, switching between energy providers is easy. What’s more, you’ll always be better off than you were before. Switching cuts energy prices significantly.
You can switch your gas or electricity provider, or both. Here’s what to do:
Step 1: Find An Old Bill
To get a meaningful quote, you will need to tell the price comparison site precisely how much energy you typically use. That way, you can get tariffs that reflect your actual use.
Step 2: Ask For A Quote
Next, use the price comparison tool to get a quote. Just fill out a few details and you’re done. It only takes a few minutes.
Step 3: Compare Deals
Once you’ve entered all your details, the next step is to compare deals. Our comparison tools provide quotes from a range of energy suppliers, showing you whether you’re getting a better deal than your current supplier.
Step 4: Begin The Switching Process
Once you’ve chosen a new tariff, you can contact the energy supplier and tell them that you want to make the switch. You may then have to wait for 14 days – a cooling-off period – before migrating onto the new tariff. On the day of the switch, you’ll need to provide your new supplier with a meter reading so that they can bill you accurately.
Step 5: Pay Your Final Bill
Lastly, you’ll need to pay the final bill from your old supplier. Get them to give you a refund if you have credit on your account.
How Much Information Do You Need To Switch Energy Suppliers?
The amount of information you need to switch energy suppliers is minimal. You’ll need basic details, such as your name, address, and postcode, as well as how much you currently pay for gas and electricity, and your current supplier. You should be able to find all this information on paper or online statements from your provider.
The more information you can provide about your current energy use, the more accurate your quote will be. Furthermore, when you provide more details, you can get information on the exit fee of your current tariff
When Is It A Bad Idea To Change Energy Suppliers?
While switching energy providers will often save you money, you should avoid doing so if the penalty exit fee for leaving a contract early is larger than the savings you could make by switching.
In some situations, people accept higher energy bills and fees for going green. Whether you wish to pay these for wind, solar or hydro is a matter of personal conscience.
How Many Times Can You Switch Energy Suppliers?
Under current rules, there is no limit on the number of times you can switch energy suppliers. However, you should avoid doing it too often, particularly if you are in the middle of a contract, as you may have to pay higher exit fees.