A year-long investigation by the Competition & Markets Authority (CMA) found that customers of the Big 6 energy firms – British Gas, nPower, Scottish Power, SSE, Eon and EDF Energy – paid around £1.2bn more annually than they would have had competition in the market functioned more effectively.

The CMA also highlighted the large numbers of consumers who have never switched utility provider and revealed that dual fuel customers could save an average of £160 a year by switching to a cheaper deal.

This apparent reticence to embrace new suppliers is surprising, given energy bills are consistently ranked as the number one worry for consumers.

Here, we answer some common questions about switching energy supplier:

Why don’t people want to switch energy supplier?

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It’s not so much a matter of not wanting to. The CMA report states that a third of consumers have never considered switching – but around half this number haven’t done so because they didn’t realise it was possible.

Many consumers would like to, but believe switching would be stressful, or they could encounter problems if they switch. Others think there is little to no difference between suppliers.

In short, many people would like to switch, but simply haven’t done so – and many more would too, if they understood that savings could be made, or just how simple it is to switch.

Will I save money if I switch energy supplier?

While bills and tariffs obviously vary from household to household, there is an easy way to find out whether you’d save money by switching – and you don’t even need to look at your most recent bill, or compare prices on the internet.

The fact is, if you haven’t switched supplier for a number of years, it is highly likely that you could get a better deal with an alternative supplier. In fact, the CMA has found that ‘established’ customers are particularly overcharged by Big Six suppliers.

Is switching energy supplier a hassle?

In practical terms, not at all.

First, check whether you’ll incur a charge for cancelling your current deal. Exit fees for early departure are a common feature of fixed rate tariffs. Nonetheless, all suppliers now allow consumers to leave up to 49 days ahead of their tariff’s end date without paying a penalty.

You’ll need to consult your most recent bill for the name of your tariff, and how much you spend (or use in kilowatt hours – kWh) on gas and electricity.

Then, compare energy deals using an online comparison service. You do not need to use a comparison site to actually switch supplier; while using one can make switching slightly simpler, you may not get the best possible rate by doing so. Which? publishes an online comparison tool that ranks 22 UK gas and electricity suppliers according to a range of different metrics, including bill accuracy, customer service and value for money. Click here to view.

Select the new supplier, and tariff, you want. Contact them and advise that you wish to switch to their services (many suppliers have dedicated contact points for switching customers, to simplify the process). They will ask you for meter readings, and you will need to settle any outstanding bills with your old company, but they will organise the switch.

Is there any service disruption if I switch energy supplier?

You shouldn’t notice any difference in service and no one should need to come round to do any work on your meter or pipes.

There is, however, scope for certain issues to arise.

To minimise problems make sure you give your old supplier your final meter reading to ensure an accurate final bill and make sure you pay this bill.

If problems do arise you need to complain to your supplier and, if you receive no resolution after eight weeks, take your case to the Energy Ombudsman.

I don’t want to use a comparison site. What should I do?

You could start by sourcing quotes from smaller providers. The CMA points out that the cheapest deals in recent years have come from non-Big Six firms such as First Utility and Extra Energy.

You could alternatively call your current supplier, and see whether they can offer you a slightly better deal.

You should also consult your annual summary. The summary will contain useful information, such as your energy use over the year, and a forecast of your probable costs over the next year.

Since April last year, energy suppliers have been legally obliged to send you one – and if you’ve mislaid yours, they must provide you with a fresh copy upon request.

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