What is switching credit on an energy tariff?

Switching credit is a one-off reward (for example, bill credit) offered by some suppliers when you switch your gas and/or electricity to them. It’s usually applied to your account after your switch completes and any eligibility checks are met.

Are cheap energy tariffs with switching credit actually cheaper overall?

They can be—if the total cost after the credit is applied is lower than alternatives. Compare unit rates (p/kWh), standing charges (p/day), the tariff length, and any exit fees, then subtract the switching credit to see the true expected cost for your usage.

How do I check if I’m eligible for switching credit?

Eligibility varies by supplier and tariff, but commonly depends on being a new customer to that supplier, completing the switch within a set time, paying by Direct Debit, and keeping the account open for a minimum period. Always review the tariff terms before switching.

When will the switching credit be paid?

Most suppliers apply switching credit after your supply start date once the switch is fully completed—often within 30–90 days (depending on the supplier’s terms). Check the tariff’s reward timeline so you know when to expect it.

Will switching energy suppliers affect my credit score in the UK?

Switching supplier itself doesn’t usually harm your credit score. However, some suppliers may run a credit check for certain payment methods (such as monthly Direct Debit) or to set terms. If you’re concerned, look for options that minimise checks and ensure bills are paid on time.

Can I get switching credit if I switch both gas and electricity?

Often yes—some tariffs offer higher rewards for dual fuel (gas + electricity), while others pay a single credit per account. Check whether the incentive is per fuel, per meter, or per household account.

What should I compare besides the switching credit?

Focus on the long-term cost: unit rate, standing charge, tariff type (fixed vs variable), contract length, exit fees, payment method, and customer service. A larger credit can be outweighed by higher ongoing rates—so compare using your typical usage.

Is there a best time of month to switch energy tariffs?

You can switch at any time, but it’s smart to compare when new deals launch or when your current fixed tariff is nearing its end. If you’re on a fixed tariff, check for exit fees and whether switching later could avoid charges.

How long does it take to switch energy supplier in the UK?

Many switches complete within around 5 working days under the faster switching process, though timings can vary. Your supply shouldn’t be interrupted—only the company billing you changes.

How can I switch to a cheap energy tariff with switching credit on EnergyPlus?

Use EnergyPlus to compare cheap energy tariffs and review offers that include switching credit. Choose the tariff that best matches your usage and preferred contract terms, then follow the online steps to apply. Start here: https://www.energyplus.co.uk/CostSavingAdvice/cheap-energy-tariffs-with-switching-credit-uk-this-month

Cheap energy tariffs with switching credit (UK) this month

Find tariffs that offer switching credit (bill credit / sign-up credit) and check if the deal still stacks up once you compare unit rates, standing charges and eligibility.

See when switching credit is worth it (and when it isn’t)
UK-specific checks: payment method, meter type, region and exit fees
Transparent methodology, example scenarios and common pitfalls to avoid

Get your energy quote How switching credit works

Switching credit offers vary by supplier and may be limited-time. Always compare the estimated annual cost, not just the headline credit.

Fast answer: what counts as a “cheap” tariff with switching credit?

A cheap tariff with switching credit is the one with the lowest estimated annual cost for your home after the bill credit is applied (where eligible) — not necessarily the one with the biggest headline incentive.

Key takeaways (UK-specific)

Bill credit is usually paid as account credit (not cash). Check when it’s applied (often after first bill, or after a set number of days).
Eligibility can depend on payment method (Direct Debit vs prepay), fuel type (electric-only vs dual fuel) and meter type (including smart meters).
Standing charges vary by region and can outweigh a credit for low-usage homes.
Exit fees (fixed tariffs) can wipe out the benefit if you plan to switch again soon.

A simple rule of thumb

If two tariffs are otherwise similar, switching credit can be valuable. But if the tariff with credit has higher unit rates or standing charges, you can end up paying more overall — especially after the first year.

Good to know: Many “credit” offers are new-customer only and can be withdrawn at any time.

Compare cheap tariffs with switching credit (whole-of-market)

Use your postcode and contact details to get personalised quotes. We’ll show tariffs that may include switching credit where available, then help you judge the overall value based on estimated annual cost, tariff type and key terms.

What you’ll need: postcode, whether you pay by Direct Debit (if known), and ideally a recent bill (annual kWh for electricity and gas). If you don’t have kWh, you can still start — your estimate can be refined later.

How switching credit usually works

1) You switch to a qualifying tariff

Credit is typically tied to a specific tariff and sign-up route (e.g., via comparison). Eligibility can depend on fuel type and payment method.

2) Credit is applied after a condition is met

Common triggers include your first successful Direct Debit, first bill, or being supplied for a set number of days.

3) You see it as bill credit

It usually shows as a credit line on your online account. If you switch away early, you may lose it (or never receive it).

Two realistic scenarios (with numbers)

Scenario A: dual fuel household (credit helps)

Assumptions: UK home on Direct Debit, dual fuel, typical consumption example (electric 2,900 kWh/year, gas 12,000 kWh/year). Tariff estimates include standing charges for the user’s region.

Tariff 1 (no credit): estimated £1,680/year

Tariff 2 (+£100 bill credit): estimated £1,735/year before credit

Year-1 comparison: £1,735 - £100 = £1,635 (Tariff 2 is ~£45 cheaper in year 1)

What to check: whether credit is split across fuels, and if it applies only after a set supply period.

Scenario B: low-usage flat (credit can mislead)

Assumptions: electricity-only, low usage (1,800 kWh/year), region with higher standing charge. Comparing a tariff with credit vs a lower standing charge tariff.

Tariff 1 (lower standing charge): estimated £720/year

Tariff 2 (+£80 bill credit): estimated £820/year before credit

Year-1 comparison: £820 - £80 = £740 (Tariff 1 still ~£20 cheaper)

Why: for low usage, standing charges form a bigger share of the bill, so a higher standing charge can outweigh the credit.

Important: All figures above are illustrative examples to show the maths. Your actual quotes depend on region, meter type, payment method, tariff availability and consumption.

Get quotes (it takes minutes)

We’ll use your details to match you with tariffs and contact you about your quote. You can opt out at any time.

First name

Surname

Postcode

Used to calculate regional standing charges and available tariffs.

Telephone

Optional, but it can help if we need to confirm tariff eligibility details (meter type, payment method, moving dates).

Use the checklist first

Privacy note: Submit only details you’re comfortable sharing. We use your information to provide quotes and support your switch. Tariff availability and switching credit are subject to supplier terms.

Compare tariffs with switching credit: what to look at

Switching credit can be useful, but only if the tariff is competitive on the basics. Use this table to compare quotes side-by-side.

What to compare	Why it matters	What “good” looks like (rule of thumb)	What to double-check
Estimated annual cost	This is the most comparable number across tariffs.	Lowest overall cost for your usage and region.	Is switching credit already included in the estimate, or separate?
Switching credit amount	A one-off boost that may improve year-1 value.	Meaningful versus the difference between tariffs (not just the biggest headline).	Is it per fuel (gas + electric) or per account? New customers only?
Unit rate (p/kWh)	Drives the bill for medium/high usage homes.	Lower is typically better if usage is high.	Is it a single rate, or multi-rate (Economy 7 / smart TOU)?
Standing charge (p/day)	Often the main factor for low usage homes.	Lower is usually better if you use less energy.	Region matters: your postcode can change this significantly.
Tariff type	Fixed vs variable changes your risk and flexibility.	Fixed for budget certainty; variable for flexibility.	Any exit fees on fixed tariffs?
Eligibility / payment method	Some tariffs/credits require Direct Debit or online billing.	Clear eligibility rules you can meet now.	Prepay and some complex meters may have fewer options.

Decision checklist: who switching credit suits

You’re likely to stay on the tariff long enough to receive the credit.
You can meet the conditions (often Direct Debit and/or online account).
The tariff is already near the cheapest on estimated annual cost.
You’re switching dual fuel and the credit applies to your account type.

Who it may not suit

You might move home soon (and credit may not be paid before you leave).
You’re on a tight budget and can’t risk a higher Direct Debit while waiting for credit to apply.
You prefer maximum flexibility and want to avoid exit fees (some fixed deals include them).
You’re a very low user where standing charge differences typically matter more than credit.

Tip: If you’re comparing a tariff with credit vs one without, calculate year-1 total and also consider what happens after the credit is used up.

Costs, exclusions and common pitfalls (UK)

Switching credit can be straightforward — but the details matter. These are the most common ways people miss out or end up paying more than expected.

1) Credit applies later than you think

Some suppliers apply credit after your first bill, after a number of days being supplied, or only after the first successful Direct Debit. If you switch away early, you may not receive it.

2) Eligibility is narrower than the headline

Credit may be restricted to new customers, dual fuel, Direct Debit, online billing, or specific meter setups. Always read the tariff terms shown alongside the quote.

3) Exit fees can offset the benefit

Fixed tariffs may charge an exit fee if you leave early. If you expect prices to change or plan to move, weigh flexibility against the credit.

4) Standing charge differences (region-specific)

Standing charges vary across Great Britain by region. A slightly higher standing charge can outweigh credit for lower usage households.

5) Prepayment and complex meters

If you’re on prepay (PPM) or have a complex meter setup, tariff and credit availability can be more limited. You can still compare, but be prepared for fewer offers.

6) Direct Debit amount isn’t the tariff cost

Your supplier may set a Direct Debit to build credit for winter. A switching credit doesn’t mean your monthly payment will drop immediately.

If you’re in debt to your current supplier: you may still be able to switch (including via debt assignment for prepayment meters), but eligibility depends on your circumstances and supplier policies. For independent guidance, see Citizens Advice energy supply guidance.

FAQs: switching credit and cheap energy tariffs

Is switching credit the same as cashback?

Usually not. Switching credit is typically bill credit added to your energy account. Cashback is money paid to you (often via a third party). Always check the wording in the offer terms.

When do I receive the switching credit?

It depends on the supplier and tariff. Common timings include after your first bill, after your first Direct Debit, or after you’ve been supplied for a set period. If timing matters to you, prioritise tariffs with clear, short credit conditions.

Can I get switching credit if I’m on a smart meter?

Often yes, but it’s not guaranteed. Some tariffs (including time-of-use) may require a working smart meter, while other offers may exclude certain smart or complex meter setups. Check the tariff’s meter requirements before you apply.

Do I have to switch both gas and electricity to qualify?

Not always. Some offers apply to dual fuel only; others apply to electricity-only. Also check whether the credit is per account or per fuel, as that affects the value.

Will switching affect my supply or cause downtime?

No. In Great Britain, switching supplier shouldn’t interrupt your gas or electricity supply. You’ll keep using the same pipes and wires; only billing and customer service change.

What if I’m in my fixed tariff end date “switching window”?

Many suppliers allow you to switch without exit fees in the period leading up to your fixed tariff ending (commonly around 49 days, but always check your supplier terms). If exit fees apply, include them in your calculation when judging whether the credit is worth it.

Can prepayment (PAYG) customers get switching credit?

Sometimes, but availability can be limited and some credits are Direct Debit-only. If you’re on prepay, focus on the overall tariff cost and any fees/conditions linked to your meter type.

How do I check if a credit offer is genuine?

Look for clear terms: who qualifies, when it’s applied, and what happens if you change tariff or supplier. If anything is unclear, treat the credit as uncertain and compare tariffs on their base rates first.

Want to sanity-check a quote? Use the table above and focus on estimated annual cost, then treat switching credit as a bonus — not the main reason to switch.

Trust, methodology and sources

Page details

Written by: EnergyPlus Editorial Team
Reviewed by: Energy Specialist
Last updated: February 2026

How we assess “cheap tariffs with switching credit”

This guide is designed to help you choose between tariffs that may include a switching credit. We focus on what most affects real household bills in Great Britain:

Estimated annual cost based on your usage and region (where provided in quotes).
Standing charges and unit rates (because a large one-off credit can be outweighed by ongoing costs).
Tariff type (fixed vs variable) and exit fees (because “cheap” depends on how long you plan to stay).
Eligibility constraints such as Direct Debit requirements, fuel type (dual fuel vs single), and meter compatibility.

Limitations: Switching credit offers and tariff availability can change quickly and may be withdrawn. We can’t guarantee every customer will qualify for a specific credit. Always review the supplier’s tariff terms before completing a switch.

Independent sources we reference

Ofgem (UK energy regulator) — guidance on switching and consumer protections.
Citizens Advice: Energy — practical help if you’re struggling with bills, debt, or switching issues.
GOV.UK energy services — official information on schemes and support.

Ready to check this month’s switching credit deals?

Get a personalised comparison based on your postcode and usage. We’ll highlight key terms (including switching credit conditions) so you can choose with confidence.

Reminder: The cheapest option for you is the one with the lowest estimated annual cost for your circumstances — switching credit is a bonus when the base tariff is already competitive.

Start your comparison Revisit the fast answer

No disruption to your supply when you switch. Quotes and credit offers are subject to eligibility and supplier terms.

Back to Energy Cost Saving Advice

Updated on 26 Feb 2026