Trading standards leaflets

Ref: 122513

Gas and electricity competition

This guidance is for England, Scotland and Wales

You could save money by switching tariffs or energy suppliers. However, comparing suppliers and choosing the right deal can be confusing.

Energy suppliers can offer you a range of different tariffs for your gas and electricity. Check which tariff suits your circumstances, then compare tariffs between suppliers. Find out which services the energy supplier provides and which discounts may be available to you. If you decide to switch, make sure you will actually make a saving with a new supplier.

You have rights and remedies under the Consumer Rights Act 2015 as the energy supplier is providing you with a service.

THE LAW

When an energy supplier agrees to supply you with gas and electricity, they are making a legally binding contract with you that is covered by the Consumer Rights Act 2015. This law sets out what you are entitled to expect from every contract that involves the supply of a service, such as the supply of gas and electricity. The 'Supply of services: your consumer rights' guide gives more information.

Energy suppliers must comply with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 when they contract to provide you with energy off-premises (such as in your home) or at a distance and without face-to-face contact (such as online). You have the right to cancel most off-premises and distance contracts and the cancellation period is 14 days. The 'Buying at home: off-premises contracts explained' and 'Buying by internet, phone and mail order: distance contracts explained' guides give more information.

If you enter into a contract because an energy supplier misled you or because they used an aggressive commercial practice, the Consumer Protection from Unfair Trading Regulations 2008 give you rights to redress: the right to unwind the contract, the right to a discount and the right to damages. See the guide 'Misleading and aggressive practices: your right to redress' for more information.

CHOOSING A SUPPLIER

The price charged for gas and electricity varies between energy suppliers. They can offer you a range of different gas and electricity tariffs and contracts that give you a choice over how you manage and pay for your gas and electricity. To make it easier to understand your bill, there is only one charging structure made up of a standing charge and the unit prices of the gas and electricity. You should obtain as much information as you can on the different energy suppliers and their products before switching. Be aware that if one energy supplier cuts / increases its prices, the others may follow.

It is important that you calculate how much energy you are currently using and how much you pay for it. This will ensure that any comparisons you make between tariffs, services and contracts are accurate. How you pay for your gas and electricity (as in direct debit, prepayment or other payment method) can also affect the charge. You can check your online statement, which will display your energy consumption for the last 12 months (unless you have been a customer for less than 12 months) and an estimated cost of supply for the next 12 months. You can also check your annual statement (if you still receive a paper copy) or ask your current supplier to help you work it out. You can then use this information to compare suppliers or to see if your current supplier can offer a cheaper deal.

There are price comparison websites that will help you find a better deal. It is advisable to use price comparison websites that are accredited by Ofgem (the UK gas and electricity regulator). For more information, visit the Ofgem website.

You can also receive advice and information on switching your supplier from the Citizens Advice consumer service.

ENERGY TARIFFS AND DISCOUNTS

Tariffs offered by energy suppliers may include:

standard variable tariff
renewable energy tariff
electric vehicle tariff
fixed price; guarantees the unit price you pay for your energy for a specified time
prepayment energy tariffs (pay as you go)

You may get a cheaper price if you pay by direct debit.

WHAT SHOULD I ASK BEFORE AGREEING TO SWITCH?

It is an important part of a contract that the energy supplier must give you pre-contact information as set out in the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. The 'Buying from business premises: on-premises contracts explained', 'Buying by internet, phone and mail order: distance contracts explained' and 'Buying at home: off-premises contracts explained' guides explain what these pre-contract requirements are. If an energy supplier does not provide the required information, you can make a claim to have your costs (if you have any) reimbursed. Ask your prospective new supplier to go through the main points of the contract before you sign.

PROCESS OF SWITCHING SUPPLIER

You can switch through a comparison website or by contacting your preferred new supplier direct.

The switch is organised by your new supplier; they will tell your current supplier that you are leaving. You will need to provide your meter readings: keep a note of these readings for yourself. Ask about arrangements for paying off outstanding debts. It takes up to five working days for a switch to be completed; your new supplier will give you a date.

WILL I BE ABLE TO CHANGE MY MIND ONCE I'VE AGREED A CONTRACT?

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you a right to cancel most 'off-premises' contracts (made on your doorstep, at home or at your place of work, for example) and 'distance' contracts (made without face-to-face contact with the supplier, such as via the internet or by phone or email). This includes energy contracts.

Your new supplier will send you details of your new agreement and you will then have a cancellation period of 14 days during which time you can change your mind. If you decide to cancel, you will remain with your current supplier.

The 'Buying at home: off-premises contracts explained' and 'Buying by internet, phone and mail order: distance contracts explained' guides give more information.

PROBLEMS WITH SWITCHING

Your current and new suppliers should work together. However, the process of switching does not always run smoothly. Ofgem requires energy suppliers to meet 'Guaranteed Standards' and sets the level of compensation payable if they breach a standard.

For more information on switching and compensation, visit the Ofgem website.

ENERGY MISSELLING

The Consumer Protection from Unfair Trading Regulations 2008 prohibit commercial practices that are unfair to consumers. If an energy supplier misleads you or engages in an aggressive commercial practice and you make a decision to make a contract that you would not otherwise have done, the supplier may be in breach of the Regulations. You have the right to complain. The 'What can I do if I have a complaint?' section of this guide gives details of who you can complain to.

Most suppliers have moved away from cold-call doorstep selling as a method of persuading consumers to switch, as they recognise that consumers do not like being pressured on the doorstep.

WHAT CAN I DO IF I HAVE A COMPLAINT?

In the first instance, contact your energy supplier to give them the opportunity to resolve your complaint. Check your bill or visit the energy supplier's website for details on how to complain.

If the complaint is not resolved in eight weeks or if you receive a deadlock letter, you can contact the Energy Ombudsman. This organisation is approved by Ofgem to deal with consumer complaints about energy bills, misselling, problems with energy supply and problems with switching supplier. The service is independent and free for consumers.

If you have been misled or the energy supplier has behaved aggressively, report your complaint to the Citizens Advice consumer service.

GAS AND ELECTRICITY COMPETITION: CONSUMER CHECKLIST

beware of bogus callers; always ask for and check identification. If you are unsure, do not open the door
if you are asked to sign any document, such as an introduction form or proof of visit form, check that it is not an agreement. If you have any doubts, do not sign
if you have any special requirements, such as a prepayment meter or arrangements for paying bills, check that the supplier can accommodate you. The supplier is not allowed to refuse your business on the basis that you have special requirements
how much will the gas or electricity cost? If you are looking at price comparison tables, check that the same level of service is on offer
check to see if you have to pay your supplier an exit fee to leave your fixed-term contract
how long is the contract? Will you be tied to that supplier for a number of years? What about cancellation charges?
what payment options are there?
what other services are on offer? Are there any energy saving measures that could reduce the bill?
be aware that you can switch suppliers if you have a smart meter but your new supplier might not offer all the smart meter services, such as remote meter readings. You may need to have the smart meter replaced
what help can the supplier offer to repair or service your boiler, gas or electricity appliances?
what help can the supplier offer if you have difficulty paying your bills?
take a meter reading on the date of transfer to ensure that you are not charged twice for the same fuel
if you pay by direct debit, make sure you don't cancel it before you have paid your final bill or received a credit refund
sales representatives can be very persuasive so be careful. Don't commit yourself until you are totally satisfied that you have all the information you need

IN THIS UPDATE

No major changes.

Last reviewed / updated: January 2024

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.

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