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Before you sign a new contract

There are different types of contracts for the supply of electricity and gas:

• rolling contracts – you will be supplied gas and electricity until you decide to cancel
• fixed term contracts – you sign up for a fixed period, eg one year
• dual fuel contracts – you take gas and electricity from one supplier in return for a discount
• deemed contracts – when you move to a new home and automatically take over the contract of the previous tenant or owner

If you want to change to another gas or electricity company, you will need to sign up to a new contract with a new supplier.

Read the contract carefully before you sign it. If you need to, ask the energy company to explain the contract to you.

If there is anything you don’t understand or don’t agree with, tell the energy company before you agree to switch.

You can also get advice about contracts from Consumer Direct, the government funded consumer advice service.

• Contact Consumer Direct

• Switching your gas and electricity supplier

Rolling contracts

Most energy companies use rolling contracts.

With a rolling contract the energy company will continue to supply you with gas or electricity until you decide to cancel the contract.

Price rises and rolling contracts

The energy company must tell you when it increases its prices.

The energy company has 65 working days from the date of the price rise to write to you about the increase.

This gives the energy company enough time to tell you about a price rise when it sends out quarterly bills. It must also tell you that you have the right to end the contract by switching to another company.

You then have 20 working days to tell your energy company that you want to cancel the contract.

As long as you start switching supplier within 15 working days, the energy company shouldn’t apply the price rise to your final bill.

If you change your mind and don’t switch supplier, you will start to pay the increased prices.

• Switching your gas and electricity supplier

Fixed term contracts

An energy company may offer you a contract that lasts for a fixed time, eg for one or two years.

You’ll usually get a discount for signing up to this type of contract. 

But if you change to another supplier before the fixed period is up, you may have to pay a fee for ending the contract early.

Dual fuel contracts

Some energy companies supply both gas and electricity and offer a single 'dual fuel' contract. 

Dual fuel suppliers may offer an extra discount if you buy both gas and electricity from them. This could be a fixed discount on your bill, eg 2 per cent, or a special rate for one or both fuels.

A dual fuel contract may not be the cheapest way to buy your gas and electricity. It may be cheaper to buy gas from one supplier and electricity from another.

Before you sign a contract, check other suppliers' prices using price comparison websites.

• Gas and electricity price comparison services Opens new window

Dual fuel bills

You may get your gas and electricity bills at the same time – it depends on the energy company and how you want to pay.

For example, if you pay by monthly direct debit, the money usually covers both gas and electricity. If you pay by other methods, eg by cheque or credit card, you may still get separate bills for gas and electricity.

Switching from dual fuel

If you have a dual fuel contract, you can change to another supplier – even if it’s just for one of the fuels, eg electricity.

If you want to continue getting the other fuel from the original energy company, you may find you are charged more for that fuel.

• Switching your gas and electricity supplier

Deemed contracts

When you move to a new home you will automatically take over a contract with the gas or electricity supplier of the previous owner or tenant. This is known as a deemed contract.

You are likely to pay more through a deemed contract than if you agree a new contract with the same supplier yourself.

So if you move house, contact your energy supplier as soon as possible. Energy price comparison websites can help you decide if it’s worth switching supplier.

If you want to change gas or electricity companies, you will usually need to give at least 28 days’ notice. Check the notice period in your contract to make sure.

• Gas and electricity price comparison services Opens new window

• Switching your gas and electricity supplier

More useful links

• Consumer rights - an introduction

• Buying a service - your consumer rights

• Buying on your doorstep - your consumer rights

• Guarantees and warranties for goods - your consumer rights