Is switching energy supplier safe? What actually happens

Plenty of people in Britain still hesitate before switching, and the reason is usually 2021 and 2022, when a string of small suppliers went under within months. It is a fair worry. It helps to know that the safety net used then is still there: when a supplier fails, its customers keep their gas and electricity. Switching by choice is far less dramatic than that.

Who does what

You pick a tariff and sign up with the new supplier, either on its own website or through a comparison site. That is the whole of your paperwork. You do not ring the old supplier to leave; Citizens Advice says the new supplier tells them for you.

The new supplier arranges the switch date and takes over the account.

The old supplier sends a final bill and settles any credit.

The network does not change. The same meter, the same pipes and cables, the same company fixing faults in your area. Nobody comes to the house.

Ofgem, the regulator for Great Britain, writes the rules that every supplier signs up to in its licence, including the ones below.

What happens and when

On the day you agree a switch, a 14-day cooling-off period starts. Within it you can cancel without paying anything.

Ofgem requires suppliers to complete the switch within 5 working days. If they do not, the new supplier must pay you £40, automatically, into your account or bank. If you ask for the switch to happen after cooling-off ends, Citizens Advice says it can take up to 21 days.

On switch day, take a meter reading, or let your smart meter send one. That reading splits the bill between the two companies.

Within 6 weeks your old supplier sends a final bill. If it shows you in credit, the money must be refunded within 10 working days of that bill.

What cannot happen

Your gas and electricity do not go off because you changed supplier. A switch changes the name on the bill, not the supply.

You do not lose a credit balance by switching. The old supplier has to pay it back, on the timetable above.

You cannot be switched just because someone rang you. A switch needs your agreement, and if your account is ever moved by mistake, Ofgem’s rules say you can get £40 within 10 working days of the mistake being agreed, and the supplier has 21 working days to switch you back.

Exit fees, and when they do not apply

Standard variable tariffs, the ones limited by the price cap, have no exit fees. Fixed deals often do, but only if you leave early. Citizens Advice’s rule of thumb: with 49 days or fewer left on your contract you can switch without a fee. With 50 or more, check the fee in your contract and weigh it against what you would save.

Debts and prepayment meters

If you have owed your supplier money for more than 28 days, it can block a switch until the debt is paid. Prepayment customers get more room: you can switch owing up to £500 for gas and £500 for electricity, as long as the new supplier agrees to take the debt on.

If your supplier goes bust

This is the scenario that frightened people in 2021 and 2022, so here is exactly what happens, according to Citizens Advice. Ofgem picks a new supplier for you, usually within a few days. You keep your gas and electricity throughout. If you are a household customer, any credit on your account is protected by law. Take meter readings and a photo of them, keep your old bills, and do not cancel your Direct Debit: it moves across. Do not switch away until your account has been moved to the new supplier. After that you can leave without exit fees.

Checking a supplier before you sign

Price is only half of it. Citizens Advice scores every supplier with more than 25,000 customers on complaints, how quickly it answers, billing accuracy and the commitments it has signed up to. In the April to June 2026 table Outfox the Market came top with 4.03 out of 5 and TruEnergy bottom with 1.38. A cheap tariff from a supplier near the bottom can still cost you time. Look it up before you sign, and read the tariff’s exit fee and end date.

Pushy sellers and cold calls

Legitimate switches are started by you. Be wary of anyone who knocks on the door or rings out of the blue about your energy, and never give your bank details or meter number to someone who contacted you first. Ask for the offer in writing and compare it yourself. If a caller claims to be from your supplier, hang up and ring the number on your bill.

Where to get free help

• Citizens Advice consumer helpline: 0808 223 1133 (Welsh: 0808 223 1144), Monday to Friday, 9am to 5pm, free from mobiles and landlines. Its supplier ratings are next updated in December 2026.
• Energy Ombudsman (energyombudsman.org): free, once your supplier has had 8 weeks or has sent a deadlock letter. You must go to it within 12 months of that letter, and decisions take about 6 weeks on average.
• Ofgem (ofgem.gov.uk): the rules on switching, the price cap and supplier failures.

Switching is routine

About 11 million households, roughly 35%, are on fixed deals, according to Ofgem. Picking a deal, with your current supplier or a new one, is an ordinary household job, not a leap. If you want to see what a new deal would cost you, compare prices with your own kWh figures. If your fix still has months to run, our free contract alert reminds you before the exit-fee-free window opens.