Switching energy suppliers is worth doing every now and then to keep your gas and electricity bills low, but when is the best time to change provider? We discuss your options.
Why should I switch?
In a market where there are several different energy suppliers all offering different tariffs depending on the area you live in, how much energy you use, and when you tend to use it, there’s no reason not to compare current energy prices. If you do find that yours is uncompetitive or there is a better deal elsewhere, it’s easy to switch suppliers.
After you have reviewed the different tariffs available, and decided on one that will fit your circumstances, you may be tempted to switch right away. However, it’s possible you could save money by waiting to switch at a more cost-effective point in the year.
When should I switch?
Autumn is likely to be the best time to switch energy suppliers, simply because we use the most energy in the winter to keep warm. As such if you switch to a more competitive tariff to coincide with the drop in temperature, you’ll benefit from cheaper energy prices during the most expensive months of the year (November, December, and January).
You’ll usually have to give your current supplier 28 days’ notice if you wish to switch, so this should be factored into your decision too. It may be a good idea to look for a new supplier in early October ready to switch in November, although it's still worth doing later than this if you haven't already.
While bearing Autumn in mind as a good time to switch, it is still worth reviewing your deal on a regular basis – perhaps every 6 months – and checking the competition to ensure the price you’re paying is still fair. Energy suppliers do tend to change their tariffs and deals relatively frequently and as such it’s worth keeping yourself informed. It’s a good idea to look into switching if your supplier has recently hiked their prices as better deals are likely to be available.
Often one of the ‘big six’ suppliers (British Gas, E.ON, EDF Energy, Npower, Scottish Power, and Scottish & Southern Energy) will reduce their prices, and the others may be expected to follow suit straight away. As such you may think it best to wait until your supplier has reduced their prices accordingly, but this can take several months – so it may be better to switch as soon as you hear about a price drop, especially if winter is approaching.
What else should I consider?
Remember that if you are in the middle of a fixed-term deal you will have to wait until the end of your term to switch suppliers. As such it may be a good idea to wait until the end of your term and then time your switch to coincide with the colder months, ensuring you get the best deal possible when you are using the most energy.
Also, it’s worth noting that often the most significant price changes (whether that’s an increased tariff or a reduced one) are not publicly announced, so it’s up to you to keep yourself informed of what the different energy suppliers are currently offering and meanwhile cutting your energy bills in any way you can.
