Switching energy tariffs has long been a reliable way for households to cut their energy bills. However, in 2022, the energy crisis caused market prices to rise significantly, leading to smaller suppliers going bust and resulting in decreased competition within the switching market. Now, as the market stabilises, switching is once again becoming a valuable tool for saving money.

Despite the simplicity of switching, many households miss out on potential savings due to myths that make the process seem complex or futile. Don’t let misconceptions hold you back! With more confusion around switching than ever, we’re setting the record straight and debunking some common myths about switching energy tariffs.

Myth 1: Switching Is a Hassle and Takes Too Long

Switching energy suppliers has become a straightforward process. Once you decide on a new supplier, there's a 14-day ‘cooling-off’ period if you change your mind. After this, the switch should take only about five days. Plus, your new supplier will handle the transfer from your old one, so you don’t need to notify them.

Myth 2: Switching Won’t Save You Money

As tariffs begin to vary again, households can save hundreds of pounds by choosing one that suits their energy habits. Different tariffs offer different benefits, and by comparing options, you can identify the best fit for your usage. 

Myth 3: I’ll Be Charged Twice If I Switch

There’s no risk of being charged twice. Your old and new suppliers agree on a switchover date, ensuring a seamless transition. Occasionally, your new supplier may require an advance payment for the first month, but this is coordinated to avoid double billing.

Myth 4: I’ll Lose Power If I Switch

One of the biggest concerns for many is the fear of losing power during the switch. However, this isn’t something to worry about. Your energy supply remains uninterrupted because the infrastructure - cables and energy sources - stays the same. The switch only affects billing, not your actual energy supply.

Myth 5: I Don’t Need to Switch Because I’m Protected by the Price Cap

The energy price cap is often misunderstood. It’s a cap on unit costs, not a limit on what you pay overall. Higher energy use will lead to higher costs, meaning that larger households or those with higher energy consumption may end up paying more than the cap amount. While the cap offers some protection, many households could still benefit from switching. 

Some tariffs, including variable rates and certain fixed tariffs, offer rates below the price cap, allowing you to save money, particularly if you’re a high-energy user. Fixed tariffs can lock in lower rates for a specified period, providing predictability and potential savings during fluctuating market conditions. So, don’t overlook the benefits of switching, even if you think the price cap offers sufficient protection.

Myth 6: I’ll Have to Get a Smart Meter If I Switch

Not all tariffs require a smart meter, although some do. If you’re not interested in getting one, simply choose a tariff that doesn’t mandate it. Researching your options ensures you won’t be caught off guard by any installation requirements.

Myth 7: I Can’t Switch Because I Rent

Renters often believe they’re stuck with the previous tenant’s energy provider. If you’re responsible for paying the energy bill, you’re free to switch suppliers without your landlord’s permission. The only exception is if your new tariff requires a smart meter; in this case, you’ll need written consent from your landlord for the installation.

Myth 8: I’m in Debt to My Energy Supplier and Can’t Switch

Being in debt doesn’t always prevent you from switching. If you owe money to your supplier but have been in debt for less than 28 days, switching should be allowed. For those with prepayment meters, it’s possible to switch if your debt is under £500, though you may need to arrange a debt transfer to your new account.

Myth 9: I Can’t Switch Because I Have Solar Panels

Having solar panels doesn’t limit your ability to switch suppliers. Many energy suppliers offer solar-friendly tariffs specifically designed for households with renewable energy systems. These tariffs can provide competitive rates, as well as incentives for generating your own electricity.

Myth 10: It Costs Money to Switch

If you’re on a fixed-rate tariff, an exit fee may apply if you switch before the contract ends. However, most fixed-rate contracts waive this fee during the final 49 days, making it free to switch at the end of your term.

Myth 11: I’ll Be Left Without Power if My New Supplier Goes Bust

The turbulence in the energy market has led some smaller suppliers to go out of business, which makes people wary of switching. Rest assured, if your supplier does go under, Ofgem will step in to transfer you to a new supplier, so you won’t lose power. You’ll then have the option to stay with that supplier or switch to another.

• • •