Is switching tariff to a cheaper one offered by the same supplier a hack, or is there a catch?

pjs493

I’ve just purchased my first home. We previously lived in military housing where you’re pretty much made to stay with the supplier and tariff they have the account set up with. Prior to getting married and moving into military housing I mostly rented where the bills were either included or I had little control over my supplier and tariff. In other words I’m quite new to having the freedom to manage my own energy bills. 

I’m with Eon for both gas and electricity. When I moved in a couple of months ago, I used a comparison website and decided on Eon, locking into the best tariff available at the time. Upon receiving a statement this morning, it noted that I could save money if I switched to a different tariff. I’m aware that prices have dropped since I moved into my home. 

I looked it up on the app and the new cheaper tariff is cheaper for standing charges and usage. So I switched. Now I’m wondering if I’ve potentially done something wrong, or is this genuinely a hack to keep checking if Eon offers a lower tariff and then switching to it. 

My old tariff had an exit fee, but only if I was changing supplier. My new tariff also has an exit fee but, again, only if I change supplier. 

The new tariff lowers the electricity standing charge by 20p per day, the gas stays the same and usage is lower for both. 

Am I missing something or is this a genuine hack?

GingerTim

I'm not sure what you mean by a 'hack', but your supplier is legally obligated to tell you if they have a cheaper tariff available to you than the one you might already be on.

pjs493

GingerTim said:

I'm not sure what you mean by a 'hack', but your supplier is legally obligated to tell you if they have a cheaper tariff available to you than the one you might already be on.

By hack, I mean even: If I’m locked into a tariff and my supplier doesn’t charge an exit fee if I change to another of their tariffs, can I just keep switching for as long as cheaper tariffs are offered and stick when prices go up?

Do suppliers bank on people not switching to a cheaper tariff because they’ve already locked in at a higher rate?

Ayr_Rage

As long as your switches have no exit fees then you're fine.

I have recently done something similar with EDF, been with them for years, they were offering a cheaper tariff along with £50 cashback even for existing customers via Topcashback, new fix has no exit fees, just have to stay on it for 3 months to get the bung.

As far as I can see if EDF/TCB don't change the terms or pull the offer I may be able to do the same again in August.

vic_sf49

pjs493 said:

By hack, I mean even: If I’m locked into a tariff and my supplier doesn’t charge an exit fee if I change to another of their tariffs, can I just keep switching for as long as cheaper tariffs are offered and stick when prices go up?

That's exactly what lots of us are doing as Octopus customers, as the majority of their tariffs have zero exit fees.

I've switched my electric 3, maybe even 4 times this year, and most of those were within the same month, as they kept bringing out better tariffs. 

Only switched my gas once though (so far).

WiserMiser

My understanding is that if you're paying the energy company directly, you have a right to choose the supplier and tariff; it doesn't matter if it's military or private renting.

If it's a pre-payment meter when you move in and you then switch to a normal credit tariff you might be obliged to switch it back to pre-payment when you move out, but that's about the only limitation.

pjs493

WiserMiser said:

My understanding is that if you're paying the energy company directly, you have a right to choose the supplier and tariff; it doesn't matter if it's military or private renting.

If it's a pre-payment meter when you move in and you then switch to a normal credit tariff you might be obliged to switch it back to pre-payment when you move out, but that's about the only limitation.

To clarify, I’m now in a private home that I own. 

When we lived in military housing, they used a specific supplier (depending on area) and occupants were obliged to stay with that supplier. This helps make things easier during void periods when the MOD are responsible for the bills. In one property we were on a commercial tariff. due to the quirks of the system, with no option to change. It means that the powers that be only need to deal with one supplier for all empty properties within a given area. 

I’m not aware of military housing having prepayment meters. We always paid by direct debit and usually had smart meters. 

RelievedSheff

It isn't a "hack" it is the terms and conditions of your tariff.

We do much the same with Outfox the Market who do not charge exit fees if you choose a new tariff with them. Every time they have a cheaper tariff available we switch too it.