What is the energy supplier loyalty penalty in the UK?

The energy supplier loyalty penalty is when long-standing customers pay more than new customers for a similar tariff. It can happen when you stay on a default, standard variable tariff (SVT) or don’t review your deal when a fixed term ends. Switching supplier or tariff can help you avoid overpaying.

How do I know if I’m paying a loyalty penalty on my gas or electricity?

Check your latest bill for your tariff name and whether it’s a fixed deal or a standard variable tariff. Compare your current unit rates and standing charges with other available tariffs for your postcode. If you’ve been with the same supplier for a long time, recently rolled onto an SVT, or haven’t compared prices in 12+ months, you may be paying more than you need to.

Is it worth switching energy supplier to avoid the loyalty penalty?

It can be. Switching may reduce your unit rates, change your standing charge, or move you to a better-value fixed tariff—especially if you’re on an SVT or an out-of-date fixed deal. Always compare the full cost (unit rates + standing charges) and check any exit fees before you move.

How do I switch energy supplier in the UK?

1) Find your current tariff details and payment method. 2) Compare tariffs and choose one that suits your home and budget. 3) Apply to switch—your new supplier will normally handle the move. 4) Take meter readings on the switch date so your final and first bills are accurate. Switching usually completes in a few working days, with no interruption to your supply.

Will my energy supply be interrupted when I switch?

No. Your gas and electricity keep flowing during the switch because the pipes and wires stay the same. Only the company that bills you changes.

Do I need to contact my current supplier to switch?

Usually not. Your new supplier typically manages the switch, including notifying your old supplier. You may only need to contact your current supplier if you want to confirm any exit fees or resolve an account issue before switching.

Are there exit fees for switching energy supplier?

Exit fees can apply if you leave a fixed tariff before it ends. Many suppliers also allow a penalty-free window (often around the final 49 days of a fixed deal). Check your tariff terms or bill before switching so you can weigh any exit fee against potential savings.

Can I switch if I have a smart meter?

Yes. You can switch with a smart meter. In some cases, smart features (like automatic readings) may temporarily operate in standard mode after switching, but you’ll still receive energy and can provide readings if needed.

What details do I need to switch energy supplier?

You’ll typically need your address and postcode, current supplier and tariff details, your payment method, and (if available) an estimated annual usage in kWh. Having a recent bill helps you compare like-for-like and avoid surprises.

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

Switching often completes in a few working days, depending on the supplier and your circumstances. Your new provider will confirm the timeline and the date your new tariff starts.

How can Energy Plus help me switch and avoid the loyalty penalty?

Energy Plus helps you compare available options and move to a tariff that better fits your home. Start here: https://www.energyplus.co.uk/ — you can review your current deal, check alternatives, and switch to avoid staying on an uncompetitive tariff.

Energy supplier loyalty penalty in the UK: how to switch and stop overpaying

If you’ve been with the same gas or electricity supplier for years, you could be paying a “loyalty penalty” — often by sitting on an expensive standard variable tariff. Compare whole-of-market home energy deals with EnergyPlus and switch with confidence.

Check if you’re overpaying versus current UK tariffs
See whole-of-market options (not just a small panel)
Switch online in minutes with support if you need it

Compare & switch (form) How switching works

Home energy only. Switching is typically completed within 5 working days. You can usually keep your supply on throughout, with no engineer visit needed.

Compare whole-of-market tariffs and switch away from loyalty pricing

The UK energy market has changed, and staying put doesn’t always pay. Many households drift onto a supplier’s standard variable tariff (SVT) after a fixed deal ends. That’s where the energy supplier loyalty penalty often shows up: long-standing customers paying more than people who regularly review and switch.

EnergyPlus lets you compare home gas and electricity deals from across the market. If a better option is available for your property and usage, you can start the switch here.

What you’ll need (takes 1–2 minutes)

Postcode (to find your region and tariffs)
Contact details (so we can send results and next steps)
Optional: a recent bill for usage (we can still help without it)

Prefer to understand it first?

Jump to what the loyalty penalty means, then come back to the form when you’re ready.

Get your whole-of-market comparison

Fill in your details and we’ll help you check if switching could reduce your home energy costs.

What is the energy supplier loyalty penalty?

In home energy, the “loyalty penalty” is the extra amount some households pay simply because they don’t regularly review their tariff. It’s most common when:

Your fixed deal ends and you’re moved onto a standard variable tariff (SVT)
You never switched after moving home
You assumed existing customers automatically get the best rates

Why it happens

Suppliers price different tariffs differently. Households who don’t switch often remain on default or legacy arrangements, while new deals are marketed with different unit rates, standing charges, or incentives. Even with regulation in place, it can still pay to check the market regularly.

What it isn’t

It isn’t a separate fee on your bill labelled “loyalty penalty”. It’s the difference between what you pay now and what you could pay on a more suitable tariff available for your home and region.

Signs you might be paying a loyalty penalty

You’re on a standard variable tariff

SVTs can be convenient, but they may not be the cheapest option for your usage. If you don’t know your tariff name, that’s a sign it’s time to check.

Your fixed deal ended months ago

Many fixed tariffs revert to an SVT at the end. If your “end date” has passed, comparing now can help you avoid paying more than needed.

Your bills feel out of step with your usage

If you haven’t changed your lifestyle but your direct debit has jumped, it may be your rates or estimated readings. Switching can be part of a broader reset.

You’ve never compared since moving in

New occupants are often placed on a deemed or default tariff initially. It’s usually worth comparing once you’ve got your account details.

You’re not sure what you pay per kWh

Your unit rate and standing charge matter more than the supplier brand. If you can’t find them quickly on your bill/app, use the form to start a comparison.

You’ve stayed “to avoid hassle”

Switching is typically straightforward: no interruption to supply, and the new supplier usually handles the transfer. A quick check can settle whether it’s worth it.

How to switch energy supplier in the UK (simple steps)

Switching is designed to be low effort. In most cases, your new supplier arranges the transfer and your energy stays on throughout.

Compare tariffs
Check unit rates and standing charges for gas, electricity, or dual fuel. If you’re considering fixed vs variable, look at the tariff length and any exit fees.
Apply for the switch
Submit your details via the comparison form. We’ll help you move forward with a suitable option.
Confirm details with your new supplier
You may receive confirmation of your start date and tariff terms. Keep an eye out for any communications so nothing is delayed.
Provide meter readings
Accurate readings help ensure your final bill and opening balance are correct. Smart meters can submit readings automatically, but it’s still worth checking.
Your switch completes
Your supply stays on. Billing moves to the new supplier and your old account is closed after final settlement.

How long does switching take?

It’s commonly around 5 working days. Times can vary depending on supplier processes and any account issues (for example, address format mismatches or missing readings).

Exit fees, standing charges and what to check before you switch

To avoid surprises, focus on the tariff details that affect what you pay across the year (not just the headline). Use the checklist below when comparing.

Item to check	Why it matters	Quick tip
Unit rate (p/kWh)	This drives most of your bill, especially in winter.	Compare gas and electricity separately if you’re not going dual fuel.
Standing charge (p/day)	You pay it regardless of usage, so it can impact low-use homes.	If your usage is low, a lower standing charge can be significant.
Exit fees	Some fixed tariffs charge if you leave early.	Check your current tariff end date; some suppliers waive fees near the end.
Tariff type	Fixed offers certainty; variable can move with the market.	If budgeting matters, consider fixed length and terms.
Payment method	Direct debit and prepayment can have different options available.	If you’re on prepay, ask about tariffs available for your meter type.

Will switching cut me off?

No — switching supplier shouldn’t interrupt your energy supply. The pipes and wires stay the same; only the company billing you changes.

Do I need a smart meter?

Not necessarily. You can switch with a standard meter too. Smart meters can make readings easier, but they’re not a requirement for switching.

Common switching mistakes (and how to avoid them)

Comparing without checking standing charges

A low unit rate can look great, but a high standing charge can erode savings, especially for smaller households or flats.

Guessing your usage

Estimates can be off. If you can, grab kWh usage from a recent bill. If not, you can still start—just tell us what you know.

Forgetting to submit a final meter reading

A quick reading at the switch date helps ensure your old supplier’s final bill is accurate.

Switching too early with exit fees

Some fixed tariffs charge an exit fee if you leave early. It may still be worth switching, but check the numbers first.

Assuming “same supplier” renewals are best

Renewal offers can be competitive, but not always. A whole-of-market comparison helps you check quickly.

Ignoring tariff length and flexibility

A longer fix can help budgeting, but consider your plans (moving home, renovations, changing occupancy) before locking in.

Loyalty penalty and switching FAQs

Is there a loyalty penalty for staying with the same energy supplier?

There isn’t usually a line item called “loyalty penalty”. The term describes the price difference that can build up when you remain on an SVT or older tariff while other tariffs become available that better fit your home and usage.

Can I switch if I’m in debt to my current supplier?

Sometimes, yes, but it depends on the supplier and your situation. If you’re concerned, submit the form and we’ll explain the options available. If you’re struggling, you may also be eligible for support schemes depending on circumstances.

Will I lose supply during the switch?

No. Switching supplier shouldn’t cause any interruption to your gas or electricity supply. The infrastructure stays the same; only the billing and tariff change.

Do I need to contact my current supplier to cancel?

In most cases, no. Your new supplier typically manages the switch. You may still need to give a final meter reading and settle a final bill.

How do I know if a fixed deal is better than a variable tariff?

A fixed deal can help with budgeting because rates are set for the term. A variable tariff can change. The best choice depends on your risk preference, how long you plan to stay in the property, and the actual unit rates and standing charges. A comparison helps you weigh the real numbers.

I have a smart meter — can I still switch?

Yes. You can usually switch with a smart meter. In some cases, smart functionality can vary during or after switching, but you can still change supplier and tariff.

What if I rent my home?

If you pay the energy bills, you can usually choose the supplier. If bills are included in rent, the landlord or managing agent may control the account. If unsure, check your tenancy agreement or ask your agent.

Why households use EnergyPlus

Whole-of-market comparison

See a broader view of tariffs and suppliers, so you can make an informed decision rather than relying on a limited shortlist.

Clear, UK-focused guidance

We explain unit rates, standing charges and exit fees in plain English—so you know what you’re switching to.

Switching made straightforward

Start with a quick form. You’ll get the next steps and support to help your switch go smoothly.

What UK customers say

“I didn’t realise my fix had ended and I’d been paying more for months. The comparison was quick and the steps were clear.”

— Homeowner, West Midlands

“Helpful explanation of standing charges. We switched confidently once we saw the full picture.”

— Tenant, Greater Manchester

“I thought switching would be a headache. It was much easier than expected and we stayed on supply the whole time.”

— Family household, Kent

Trust indicators

Transparent comparisons: focus on unit rates and standing charges
Home energy only: content and support tailored to households
Accessible guidance: clear steps and FAQs for first-time switchers

Ready to stop paying the loyalty penalty?

Use EnergyPlus to compare whole-of-market home energy deals and start your switch. It’s quick, and your supply stays on throughout.

Compare & switch now

Tip: If you can, have a recent bill handy for your unit rates and meter readings. If not, you can still start with just your postcode.

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Updated on 27 Feb 2026