When is the best time to switch energy suppliers?

When to switch energy suppliers

When the nights draw in and temperatures drop, many households start to think about their energy bills. Turning the heating on for the first time in months usually leads to higher energy use and larger bills over the winter. In the past, sticking with the same energy supplier for years was common, but customer loyalty rarely pays off in the current energy market.

Energy suppliers regularly change their prices based on wholesale market costs. Recently, global events and instability in the Middle East have caused wholesale energy prices to fluctuate. Because of this, the rates you pay for gas and electricity can change several times a year if you are on a standard variable tariff. Taking the time to compare deals regularly is the best way to keep your costs down.

There is no single best day to switch your energy supplier. The right time depends on what type of tariff you are currently on, whether your contract is ending soon, and what energy analysts expect prices to do next. Right now, with prices expected to rise again in the autumn, looking at your options early can help you avoid the worst of the winter price hikes.

How much energy costs right now

To understand whether you should switch, it helps to know what is happening with energy prices right now. On 1 July 2026, the Ofgem price cap increased by about 13%. This cap limits the maximum amount a supplier can charge you for each unit of gas and electricity you use, as well as the daily standing charge.

Ofgem recently updated how it calculates a typical household bill. It lowered its Typical Domestic Consumption Values (TDCV) because people are generally using less energy than they used to. The new figures assume a typical home uses 7% less electricity and 17% less gas. Under these new, lower usage estimates, a typical household paying by Direct Debit will spend £1,663 a year from July to September 2026. For those using a Pay As You Go prepayment meter, the typical cost is £1,620 a year.

If you look at older estimates that assume higher energy use, the July 2026 cap sits at £1,862 a year. It is important to remember that the price cap is not a hard limit on your total bill. If you use more energy than the typical household, your bill will be higher than these headline figures. The cap only limits the unit rates, not your total costs.

The government has also made recent changes to energy bills. In April 2026, the Energy Company Obligation (ECO) levy and 75% of the Renewables Obligation were removed from consumer bills and moved to general taxation. This change saves the average household roughly £150 a year. On top of this, Prime Minister Andy Burnham recently announced a cut to VAT on electricity bills, which is expected to save households another £45.

Despite these savings, the 13% rise in the July price cap means that standard variable tariffs remain expensive. Because the cap went up, many fixed-rate deals are currently priced below the standard variable rate, making this a good time to see what is available.

Why October 2026 matters for your bills

The Ofgem price cap changes four times a year: in January, April, July, and October. Energy analysts, such as Cornwall Insight, constantly track wholesale energy markets to predict what the next cap will be. Current forecasts differ and can change before Ofgem confirms the cap, but some indicate that it could rise again from 1 October 2026.

Based on the new, lower typical usage figures, the October cap is predicted to increase from £1,663 to somewhere between £1,741 and £1,747 a year. Gas unit costs alone are expected to go up by about 5% compared to today's prices. This is driven by ongoing pressures in the wholesale market and geopolitical conflicts.

Because prices are expected to rise just as the weather gets colder, switching to a fixed deal before October is a practical way to manage your costs. If you fix your tariff now, your unit rates and standing charges will not go up when the October price cap takes effect. You will know exactly what you are paying for each unit of energy throughout the winter.

Should you choose a fixed or variable tariff?

When you look to switch, you generally have to choose between a fixed-rate tariff and a standard variable tariff. Each option has different rules and suits different situations.

A standard variable tariff tracks the Ofgem price cap. If wholesale energy prices drop, your unit rates will eventually drop too. But if prices rise, your rates will go up. If you do nothing when a fixed deal expires, your supplier will normally move you onto a default tariff. In some circumstances, it can roll you onto a new fixed deal with no exit fees and a price no higher than its variable tariff. While you are protected by the price cap, these default tariffs are rarely the cheapest deals available.

A fixed tariff locks in your unit rates and daily standing charges for a set period, usually 12 or 24 months. Fixing your tariff right now protects you from the predicted winter price hikes. The main trade-off is that if wholesale energy prices unexpectedly fall next year, you will be locked into your agreed rate. If you want to leave the fixed deal early to get a cheaper rate, you usually have to pay an exit fee. Some suppliers offer flexible products, such as a 'Fix & Fall' tariff, which lock in a maximum price but allow your rates to drop if the wider market gets cheaper.

Switching when you are already on a fixed deal

If you are already on a fixed-term contract, you might think you have to wait until the very last day to switch suppliers to avoid paying an exit fee. This is a common misconception. Under Ofgem regulations, your switching window opens well before your contract ends.

You can switch to a new supplier without paying any early exit fees during the final 49 days of your fixed-term contract. This rule gives you plenty of time to shop around and line up a new deal before your current one expires.

Your current supplier is legally required to send you a renewal reminder between 42 and 49 days before your fixed deal comes to an end. This notice will tell you exactly when your contract finishes and what price you will pay if you roll onto their default variable deal. They may also offer you a new fixed deal to stay with them. However, they cannot sign you up for a new fixed term without your clear permission.

If you are outside the 49-day window and want to switch, you need to check how much the exit fees are. If the savings you would make on a new, cheaper tariff are smaller than the exit fees you have to pay, it is usually better to stay put and wait until your current deal is closer to ending.

Switching when you move home

Moving to a new house is one of the best times to check your energy options. When you move in, you are automatically placed on a 'deemed contract' with the supplier that provided energy to the previous occupant. This will almost always be a standard variable tariff.

You do not have to stay with this supplier. You are free to switch away immediately, and you will not be charged any exit fees for leaving a deemed contract. It is highly recommended to use moving as a trigger point to shop around, rather than just accepting the previous occupant's supplier.

When you arrive at your new home, take meter readings straight away and give them to the current supplier. This ensures you only pay for the energy you use from the day you move in. Once your account is set up, you can start looking for a better deal.

How to compare energy deals accurately

If you want to find out if you can save money, you need to compare the market. Tariffs and market conditions change regularly, so a deal that was competitive a year ago may not be the best option today. The cheap tariff a supplier offered you a year ago might not be their best offer today.

To get a truly accurate quote, you need to know how much energy you actually use. Guessing your usage or just looking at your monthly Direct Debit amount will give you rough estimates that might be wrong. Your Direct Debit is just a payment plan, not a measure of the energy you burn.

Using your real kWh figures ensures the quotes you see match your actual habits, making it much easier to tell if a new tariff will genuinely save you money.

What happens when you switch

Once you choose a new tariff, the new supplier handles the entire switching process for you. You do not need to contact your old supplier to cancel your contract, and there will be no interruption to your gas or electricity supply. The pipes and wires stay exactly the same.

Under the mid-2026 Ofgem switching rules, you have clear protections if things go wrong. If your switch is delayed because of a problem like an incorrect meter detail or an address mismatch in the national database, you may be entitled to compensation.

This compensation falls under the Guaranteed Standards of Performance (GSOP). If a supplier fails to complete the switch within the required timeframe, or if they make a mistake that causes a significant delay, they must pay you a set amount automatically. You usually do not even need to ask for it; the supplier should apply it to your account or send you a payment.

What to do if switching is not enough

If you find that your energy bills are becoming a serious burden on your finances, simply switching to a slightly cheaper tariff may not solve the problem. If you are struggling to keep up with your payments, your first step should always be to contact your current supplier and explain your situation.

Suppliers are required to help you if you cannot pay. They can offer options such as setting up a more manageable payment plan or reviewing your payments to ensure they are accurate. In some cases, they might suggest installing a prepayment meter so you can control exactly what you spend, though rates for these can differ from Direct Debit rates.

You should also check if you are eligible for government support. Schemes like the Winter Fuel Payment are designed to help specific households with their heating costs during the colder months. You are not alone if you are finding it hard to pay, and reaching out to your supplier or a debt charity is the best way to find out what help is available.

Final thoughts on switching