Cheap Gas & Electricity

Q: Isn't switching a big hassle?

A: No. Switch, and you keep the same gas, electricity and pipes. Only service and, crucially, cost changes. But it can take up to two months to switch across.

All you need to do is take five minutes to do a comparison, find your cheapest deal and fill in your details. There can be hitches but switching should be simple for most.

Q: I'm in debt to my supplier, can I switch?

A: If you're on prepay, you can if the debt's £500 per fuel or less. If you're on a credit meter, it varies by supplier and payment type. British Gas and Scottish Power tell us you need to pay off your debt before switching away. The other top six firms may let you switch, then pay it off.

If you're in credit when you switch, your old provider needs to give you the cash.

Q: Suppliers are all the same, so isn't switching pointless?

A: You're right – in many ways they are the same, even though some new smaller suppliers have launched. Yet switching isn't actually about suppliers. Just like one mobile phone firm has many different tariffs, so do energy suppliers.

One supplier can have both the UK's cheapest and most expensive tariff. So the aim's to find your cheapest tariff, regardless of the firm. To show you the impact, and potential waste, someone with typical usage on the cheapest tariff pays on average £921/year. But the same user on a pricey tariff will pay £1,221/year.

Q: How long does it take to switch?

A: Energy suppliers have a cooling-off period of 14 days, which starts from the date you submit your switch, so no action is taken until this period is over. The switching process can take up to four to six weeks to complete, depending on the supplier, although some will now switch you more quickly.

But don't worry, you won't lose your supply during this time. It should be a seamless handover from one provider to the other. All that's really changing is the billing, not the actual gas and electricity that you're being supplied.

Energy suppliers are supposed to keep you updated on your switch (via letter/telephone/email – please keep an eye on your junk/spam folder). If you ever have any queries about your switch, you can always contact your energy supplier for an update.

Q: How long does it take to get confirmation after switching?

A: You usually get a confirmation email from the comparison site within 24 hours (definitely via Cheap Energy Club). After that, you're due a welcome pack. It could take weeks (sometimes they even deny you've done it).

Q: I've switched before. It said I'd save, but my bills weren't lower?

A: While it sounds strange, you may save money by switching, even if your bills go up during a round of price hikes. For example, during price hikes by suppliers, you might switch to a new deal to pay less, but then see the price of your NEW tariff increase slightly.

But if you hadn't switched during the price hikes, your bills would've gone up even more on your OLD tariff. So, while you're paying a bit more, it'll still be less than if you hadn't switched.

Q: I am moving home, can I take my fix with me?

A: If you're moving, some providers will allow you to take the fixed tariff to the new house. You usually have to pay the new region's prices, which may be different. But because you've locked in your rate before prices go up generally, the savings should still outweigh this.

Therefore if you're fixing right now, it's best to compare based on your new postcode (if you know it) as you'll be there longer – and, of course, check the fix is portable.

Q: Should I call my existing provider to fix?

A: No, no, no. This isn't about grabbing any fix. That could leave you locking in at a high cost – it's about locking in on the cheapest fix, which may be with another provider.

Q: Will prices keep rising in the long run?

A: With energy firms' efficiency, green energy and investment obligations, prices are predicted to go up at least 30%-40% over the next five years, unless there's huge political change.

Q: Must energy providers give notice of price rises?

A: Yes, 30 days' notice, so you'll know when it's coming.

Q: Does switching affect my credit rating?

A: Suppliers often carry out credit checks when you apply that show on your credit file. Lenders can see these. Each application can have a minor effect on a future credit score. It's usually not an issue unless you're applying for lots of other credit cards and loans around the same time.

Q: I've just moved house, how can we compare?

A: If you can get an idea of usage figures from the previous homeowners, brilliant. These figures will give you the most accurate comparison.

If not, some comparisons offer a movers' service. Simply answer some basic questions about the house, such as size and appliance use, and it'll tell you the likely cheapest provider.

Until you switch, the energy supplied to the house will come from the supplier the previous owners used.

Q: I'm in the process of switching to a new supplier, but haven't fixed. Is it too late?

A: When you switch supplier, you've got a 14-day cooling-off period. So if you're within this time, do a new comparison looking for a fixed deal and if it's with a different supplier, you can switch again without a problem.

If it's with the same provider or if you've missed the cooling-off period, call the supplier you're due to move to and ask it to switch you to its cheapest fixed tariff (use a comparison to check). Otherwise you'll have to wait until the supply is live before switching again.

Q: I fixed, now prices are up, will I get it?

A: The point of a fix is you're not affected by energy price rises.

If you fixed to cheap fixes that have now been pulled, you should be fine – you'll normally get the prices advertised at the point you applied (whether directly or via a comparison site).

Things can go wrong, though. You could fail a credit check, or maybe you're heavily indebted to your supplier and it tries to block you. If so, you should be told within about two weeks.

Q: I'm already tied in, is it worth asking my current supplier if I can switch to a fixed deal?

A: The only way it can lock you in is with an exit penalty that wipes out any savings you'd make by switching. So first ensure your provider's fix is competitive. If you'd save more than the exit penalty by switching elsewhere, there's no point anyway.

If not, while we've never heard of this happening, it's certainly worth seeing if your current company will waive your exit fee and switch you to its fix – you can always push hard by threatening to go elsewhere if not.

Q: My friend says Utility Warehouse promises to be cheapest?

A: Utility Warehouse/Telecom Plus is a network marketing firm, so its users can be very keen to sell it on. Its 'price promise' excludes online tariffs, which tend to be the cheapest.

As its prices are covered by comparison sites, just like others, to see its price for you, do a comparison (scroll for it, as it usually isn't near the top). However, some do like it for getting multi-utility discounts (ie, energy and phone together). The problem is you're normally locked into the energy and phone elements to get the full benefit.

Q: I'm only going to save £10. Is it worth switching?

A: Remember, by fixing you're not just saving now, the aim is to get a guarantee against prices rising. You could also get cashback on top of the tariff saving via the cashback site links.

Q: How do I switch – will the new company contact the old?

A: Yes. There's no need to contact your old provider (unless, perhaps, you are in debt with it and want to discuss how you pay it off).

Q: I've heard some people switch to a cheaper price but have a bigger direct debit?

A: Direct debits are based on an estimate of your usage. Some find they switch to a cheaper tariff, but their direct debit rises.

This is usually because the new firm over-estimates, or the old one under-estimates. If it's too high and means you overpay, you'll get the money back later. If it's a problem, you've a right to ask them to lower it. See Energy Direct Debits.

Q: I'm renting, can landlords dictate which electricity provider I use?

A: If you pay the gas and electricity bill directly (not via the landlord), you can and should compare and switch. Don't stick with the previous tenants' supplier as often it's costly. Always do a meter reading as soon as you move in.

You have a right to do this without your landlord's permission, though it is worth checking your tenancy agreement just in case it's a breach. If it is, communicate with the landlord – nothing changes for them if you switch, so it shouldn't be an issue.

Even if your tenancy agreement says you can't switch, challenge it. Preventing a tenant from changing energy suppliers may be viewed as an unfair term in a tenancy agreement, so talk to Citizens Advice to see if it can help. If you pay your landlord for energy, it's their choice.

Q: I only use electricity – can I switch and fix?

A: Yes, use Cheap Energy Club to find the cheapest electricity prices for your area. Just select 'electricity only' and it will show your top fixes.

Q: Is it true that paying by direct debit is cheapest?

A: Yes, but specifically for monthly direct debits, which can be around £90 cheaper/year. Your bill is then estimated, so make sure you do regular meter readings.

Q: What happens if my energy company goes bust?

A: Most importantly, you won't lose continuity of supply. Under energy regulator Ofgem's safety net rules, a new supplier will be appointed to take over your supply, and you'll likely be moved across to a standard tariff. However, you're free to switch away without exit fees if the price isn't good enough, so make sure you do a comparison.

If your account is in credit when the supplier goes bust, you'll get this back too - the new supplier will pay back any credit balances or add it to your new account to pay for future energy use once it takes over your supply.