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Thursday, 23 February 2012

Switching your gas and electricity supplier

Switching to another gas or electricity supplier could save you money. Find out what you need to do when you switch supplier, what rights you have to cancel and how to complain if things go wrong.

Choosing a new energy supplier

To see if it's worth switching energy companies, first work out how much you are paying for your fuel each year. You can do this by looking at last year's bills and comparing them to the prices being offered by different companies.

You can also use price comparison websites to help you find a cheaper deal. You can choose separate companies to supply your gas and electricity or one company to supply both - this is known as dual fuel.

Ask energy companies to tell you:

  • their payment options – some payment methods are cheaper than others, eg you may get a discount for paying by direct debit
  • if there are charges (penalties) you have to pay if you cancel the contract
  • if you will have to pay a standing charge on top of the cost of the energy you use – this covers a supplier's fixed costs, eg for maintenance

Energy companies should provide information about switching for free.

Don’t sign anything unless you have decided to switch supplier - even if you’re told it's not a contract. Follow the link below to get more advice on protecting yourself from scams.

How to change energy supplier

Step one: before you sign up to a new energy contract, read the terms and conditions in the contract. If there's anything you don't understand, ask the energy company.

Step two: sign a new contract with the energy company. The transfer process should take about six weeks to complete.

Step three: give your existing supplier 28 days' notice that you plan to switch. If you do this by phone, follow up with a letter or email to confirm. If you forget to give notice, this can delay the date you switch.

Step four: take a meter reading on the day you change supplier. Write down this reading and the date it was taken in case you disagree with the cost of your first bill.

Step five: pay any outstanding money that you owe to your old supplier.

Liquid petroleum gas – switching supplier

Look out for hidden charges

You could be charged if you change LPG supplier within two years

If your home runs on liquid petroleum gas (LPG) and you want to switch supplier, check your contract.

Suppliers can make you buy LPG from them for up to two years. If you want to switch LPG supplier within this time, you may have to pay a fee to end the contract.

You won't be able to switch supplier if you take LPG from a shared supply, eg on a housing estate or caravan park.

You can find a list of LPG suppliers on the website for UKLPG, the LPG trade association. If the new supplier can't use your existing tank (or won't), they may charge you for a new tank or to replace service pipe work.

Once you've found a new supplier, write to your existing LPG supplier to end the contract. This is called giving notice. The switch must be made:

  • within 28 days of giving notice if you keep your existing tank
  • within 42 days of giving notice if you need a new tank

Your rights when switching

You get a seven-day 'cooling-off' period if you sign up to a new energy contract:

  • online
  • over the phone
  • when a salesperson visits your home or place of work (door-to-door selling)

This allows you to cancel the contract for any reason.

You don't have this right if you are switching LPG supplier or sign up to a new energy contract in a shop.

Problems switching

Report a fraud

Use Action Fraud to report fraud to the police

If you owe money to your gas or electricity supplier, it may not let you switch.

If you have been transferred to a new energy supplier without your agreement ('consent'), this is called an 'erroneous transfer'. For example, if you discover that your signature has been forged on a contract by a salesperson.

If this happens, tell both companies immediately that you did not want to switch. Confirm any phone call you make in writing.

The new energy company then has:

  • five working days to tell you in writing what will happen next
  • 20 working days to confirm you will be returned to your old supplier

If you think the mistake was deliberate, you can report the salesperson to the police and Consumer Direct, the government funded consumer advice service.

If you need to complain

If you have a problem with your gas or electricity company, always contact the company first.

Follow up any complaint made over the phone in writing.

If you don't agree with the supplier's response, you can complain to:

  • Consumer Direct
  • the Energy Ombudsman – you will first need to give the energy company eight weeks to sort out your complaint

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