Energy supplier loyalty penalty UK: how to switch and stop overpaying
If you’ve stayed with the same supplier for years, you could be paying a “loyalty penalty” — higher prices than newer customers. Compare whole-of-market home energy deals with EnergyPlus and switch with less hassle.
- Check if you’re paying more than you need to (even on a standard tariff)
- See options from across the UK market in one place
- Switch online in minutes — we’ll guide you through what you need
For UK households only. Prices change frequently and depend on your region, meter and usage. Switching is usually free; exit fees may apply on some fixed deals.
Compare whole-of-market home energy deals and switch
The “energy supplier loyalty penalty” happens when long-standing customers end up paying more than people who switch or regularly review their tariff. If you haven’t checked your tariff recently, it’s worth comparing what’s available for your postcode and meter type.
Use the form to request a comparison and switching help from EnergyPlus. We’ll use your details to identify suitable tariffs across the market (where available) and explain the next steps clearly.
- You’ve been with the same supplier for 12+ months
- You’re on a standard variable tariff (SVT) or can’t remember your tariff name
- Your direct debit has crept up without a clear explanation
- You’ve never compared deals since moving in
Get your comparison (UK households)
Fill in your details and we’ll help you compare and switch. It’s free to submit.
What is the energy supplier loyalty penalty in the UK?
The term loyalty penalty describes the extra amount some households pay by staying with the same supplier or tariff, compared with households who switch or renegotiate regularly. It can show up as a higher unit rate, a higher standing charge, or simply missing out on cheaper tariffs.
Why it happens
Many customers roll onto default rates after a fixed term ends, or simply never review their tariff. Suppliers may reserve their most competitive deals for new customers or online-only sign-ups.
What it can look like
A direct debit increasing, bill estimates drifting upwards, or paying a higher rate than similar homes in your region. The difference can be bigger for higher-usage households.
When to act
If your fix is ending, your payments changed, you’ve moved home, or you haven’t compared for 12 months, it’s a good time to check the market.
How to switch energy supplier in the UK (without stress)
Switching is typically straightforward for most UK households: you choose a tariff, the new supplier arranges the transfer, and your supply usually continues without interruption. Your meter and pipes/wires stay the same — only the billing supplier changes.
- Compare your options by postcode and meter type (standard, smart, Economy 7, prepayment).
- Check tariff details: unit rate, standing charge, exit fees, payment method, and whether it’s fixed or variable.
- Start the switch with your chosen supplier — they handle the process and contact your current supplier.
- Take meter readings when requested (or your smart meter may send readings automatically).
- Receive final bill/credit from your previous supplier and begin paying the new one.
You can often switch even if you’re in debt to your current supplier, but the options depend on your circumstances (particularly with prepayment meters). If you’re unsure, submit the form above and we’ll point you in the right direction.
What you need to switch (and what you can skip)
Having the right details to hand helps you compare accurately — but you don’t need to overcomplicate it.
That’s common, especially if you’ve moved recently. Submit the form with your postcode and contact details and we’ll help you identify what you’re currently on and what you could switch to.
Common switching mistakes that keep the loyalty penalty in place
Avoid these and you’ll usually get a more accurate comparison and a smoother switch.
Comparing on monthly direct debit only
Monthly payments can be adjusted to pay off credit/debit balances. For a true comparison, focus on unit rates, standing charges and estimated annual cost.
Forgetting exit fees
Some fixed tariffs include early exit fees. If you’re close to the end date, it may be cheaper to wait — or choose a deal that still stacks up after fees.
Not checking meter type
Economy 7 and prepayment tariffs can be priced differently. Ensure you’re comparing like-for-like for your meter and usage pattern.
Using outdated usage figures
Household changes (WFH, new baby, EV, heat pump) can change your usage materially. Updated estimates improve your results and reduce bill shocks.
Why compare with EnergyPlus?
If you’re trying to avoid the loyalty penalty, the biggest win is consistency: compare regularly, understand the tariff you’re on, and choose a deal that fits your home.
Whole-of-market view
Compare across the market (where available), rather than relying on a single supplier’s offers.
Clear tariff breakdown
We focus on what changes your bill: unit rate, standing charge, term length and any fees.
Switching help
If you’re unsure what you need, we’ll guide you through the details that matter for a smooth switch.
FAQs: loyalty penalty and switching supplier
Can I switch energy supplier if I’m on a standard variable tariff (SVT)?
Yes. Many households on SVTs can switch without exit fees. Comparing rates can help you see whether a fixed deal or another variable option is better for your home right now.
Will my gas/electricity go off when I switch?
No — switching supplier doesn’t usually interrupt your supply. Your network (pipes and wires) stays the same; only the company billing you changes.
Is it worth switching if prices are high?
It can be. Even in a high-price market, tariff structures differ by supplier and region. Switching may reduce costs, improve billing/service, or give you more certainty with a fixed term.
Can I switch if I have a smart meter?
In most cases, yes. Your smart meter should keep working, though smart functionality can vary depending on meter model and supplier systems. If you’re unsure, we’ll help you check.
What about exit fees on fixed tariffs?
Some fixed deals include exit fees if you leave before the end date. When comparing, consider the overall cost difference versus your current tariff and how close you are to the end of your term.
How often should I compare to avoid the loyalty penalty?
A sensible rule is every 12 months, and also whenever your fixed tariff is ending or your payments change unexpectedly. Regular checks help you avoid drifting onto a higher-cost option.
Jump back to the comparison form to get started.
What UK households say about switching
Real-world feedback tends to focus on simplicity, clarity, and confidence in the numbers.
"I didn’t realise I’d been on a default tariff since my fix ended. The comparison made it obvious what I was paying and what I could change."
"The steps were clear and I understood the standing charge vs unit rate for the first time. Switching was less painful than expected."
"I wanted to check Economy 7 options and didn’t want to trawl through lots of supplier pages. Getting everything in one place helped."
Energy prices and availability vary by region and circumstances. We’ll explain the basis of comparisons and help you understand the tariff details before you switch.
Stop the loyalty penalty — compare and switch today
Submit the form and get help comparing whole-of-market home energy tariffs for your postcode.
EnergyPlus is a comparison service for UK homes. If you’re moving house or your fix is ending soon, it’s a great time to review your tariff.
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