27/01/2021
Moving home is often cited as one of life's most stressful events, a whirlwind of packing, planning, and paperwork. Amidst the chaos of boxes and change of address forms, it's all too easy to overlook crucial financial details, particularly concerning your energy supply. One common oversight that can cost you money is failing to claim back funds you're owed by your previous energy provider. If your final bill shows you're 'in credit', meaning you've paid for more energy than you've used, that money belongs to you. This comprehensive guide will walk you through the essential steps to ensure you reclaim every penny and navigate your energy accounts seamlessly when relocating in the UK.
- Before You Pack: Essential Energy Steps for Moving Out
- Settling In: Managing Energy at Your New Address
- Navigating Prepayment Meters in Your New Home
- Switching Suppliers or Tariffs: Optimising Your New Home's Energy
- Common Challenges and How to Overcome Them
- Frequently Asked Questions About Energy Refunds and Moving
- Q1: How long does it take to get a refund from my old energy supplier?
- Q2: What happens if my old supplier doesn't send my final bill on time?
- Q3: Can I avoid an exit fee if I'm on a fixed tariff?
- Q4: What should I do if my new home has a prepayment meter with existing debt?
- Q5: Do I need my landlord's permission to change from a prepayment meter to a credit meter?
Before You Pack: Essential Energy Steps for Moving Out
Preparation is key when it comes to managing your energy accounts during a house move. Taking a few proactive steps before you hand over the keys can save you significant hassle and ensure you don't overpay, or worse, pay for someone else's energy usage.
Notifying Your Supplier
It's imperative to inform your current electricity and gas suppliers about your impending move. Most suppliers require at least 48 hours' notice, though providing more time is always advisable. This allows them sufficient time to process your account closure and prepare your final bill. Neglecting this step can lead to you being charged for energy consumed by the new occupants, which is a headache you definitely want to avoid.
Crucial Meter Readings
On the very day you move out, make sure to take final readings from both your electricity and gas meters. This is a non-negotiable step. Record these readings meticulously, noting down the exact date and time they were taken. Take photos of the meter displays as additional evidence. These readings are fundamental for your supplier to calculate your accurate final bill. If there's a dispute later on, your records will be invaluable. Without them, you risk being estimated a higher usage or struggling to prove your case if you're due a refund.
The Final Bill and Claiming Your Credit
Once you've provided your final meter readings and a forwarding address, your old supplier will send you a final bill. This bill should arrive within six weeks of your moving date. If this bill indicates that you are in credit – meaning you've paid for more energy than you consumed – you are entitled to a refund. It's your money, and you should claim it back. Contact your supplier directly if the credit isn't automatically refunded. They should process this within a specified timeframe, typically 10 working days of sending you the final bill. If they fail to do so, you might even be owed compensation for the delay.
Understanding Exit Fees on Fixed Tariffs
If you're currently on a fixed-term energy tariff, moving home might trigger an 'exit fee' for breaking your contract early. These fees can vary significantly between suppliers and tariffs, so it's crucial to check your contract terms or contact your supplier directly to understand the potential charges. In some cases, suppliers might allow you to transfer your existing fixed tariff to your new address without penalty, especially if it's within their service area. Always enquire about this option before assuming you'll be charged, as it could save you a considerable sum.
Smart Meters: What to Leave Behind
For those with a smart meter, it's worth verifying that it's operating in 'smart mode' before you leave, meaning it automatically sends readings to your supplier. If it's not, you'll need to take a manual reading just like with a traditional meter. Crucially, your in-home display (IHD), the small screen that shows your energy usage, should be left at the property for the next occupants. It's linked to the smart meter at that specific address and won't work correctly at your new home.
Settling In: Managing Energy at Your New Address
Once you've moved into your new home, the energy tasks aren't over. There are immediate steps to take to ensure you're correctly billed from day one and can start managing your new energy accounts effectively.
Notifying Your New Supplier
Upon moving in, you should contact the current energy supplier for your new property to inform them of your arrival. You'll automatically be placed on a 'deemed contract' with this supplier, usually on their standard variable tariff. This is a default arrangement until you choose a specific tariff or switch to a different supplier. Knowing who your supplier is crucial; if you're unsure, you can use online tools or contact the Meter Point Administration Service (MPAS) for electricity and the National Grid for gas to find out.
Taking Your First Meter Readings
Just as important as taking a final reading at your old home is taking an initial reading at your new one. On the day you move in, read both the electricity and gas meters. Provide these readings to the current supplier for your new property. This ensures your first bill accurately reflects your usage from the moment you take responsibility for the property, preventing you from being charged for the previous occupants' consumption.
Receiving and Paying Your Final Bill
Your old supplier is obligated to send your final bill within six weeks of your move. You typically have 28 days to pay this bill from the date it's issued. It's important to settle this promptly to maintain a good credit history and avoid any potential debt collection issues.
Getting Your Refund: The 10-Day Rule and Compensation
As mentioned, if your old account was in credit, your supplier is required to refund you the money within 10 working days of sending you the final bill. This is a regulatory standard. If they fail to meet this deadline, they may owe you compensation. Don't hesitate to chase them if your refund is delayed; it's your right to receive the money you're owed in a timely manner.
Here's a quick comparison of key actions:
| Action Stage | Key Steps | Why it's Important |
|---|---|---|
| Before Moving Out | Notify old supplier (48hr+ notice) Take final meter readings (with date/time/photos) Provide forwarding address Check for exit fees on fixed tariffs Leave IHD for smart meters | Avoid paying for new occupants' energy Ensure accurate final bill & refund Receive final bill & refund Avoid unexpected charges Maintain smart meter functionality for new tenants |
| After Moving In | Notify new supplier Take initial meter readings Understand 'deemed contract' Pay final bill from old supplier Claim any credit refund from old supplier | Establish your account from day one Ensure accurate first bill Know your immediate tariff terms Clear old debts Reclaim your money promptly |
Discovering your new home has a prepayment meter can add an extra layer of complexity, but with the right steps, you can manage it effectively and avoid inheriting someone else's debt.
Immediate Action: Contacting the Supplier
If your new home has a prepayment meter (where you top up before using energy), contact the current supplier immediately. It is crucial not to use any existing key or card, or put money on the meter, until you have spoken to them. Doing so could mean you end up paying off debts owed by the previous tenants.
Avoiding Previous Debts
When you contact the supplier, explicitly ask them to remove any outstanding debt from the meter that belongs to previous occupants. Provide proof of your move-in date (e.g., tenancy agreement, completion statement) if requested. They are obliged to ensure you don't pay for someone else's arrears. They should also provide you with a new prepayment key or card and information on how the meter works and where to top up.
Considering a Switch to a Credit Meter
For many, switching from a prepayment meter to a credit meter (where you pay after you've used the energy, typically monthly or quarterly) offers greater convenience and often access to better tariffs. Your supplier can usually change your meter or switch a smart meter to 'credit mode' remotely.
| Feature | Prepayment Meter | Credit Meter |
|---|---|---|
| Payment Method | Pay-as-you-go (top up before use) | Pay after use (monthly/quarterly bills) |
| Cost Control | Strict, stops when credit runs out | Flexible, usage varies, can lead to bill shock |
| Tariff Availability | Often limited, typically more expensive | Wider range of competitive tariffs |
| Convenience | Requires physical top-ups, can run out of credit | Automatic payments (Direct Debit), no need to top up |
| Debt Management | Easier to manage small debts, but can be disconnected | More flexibility with payment plans, but larger debts can accrue |
Credit Checks and Alternatives
To switch to a credit meter, you'll likely need to pass a credit check. If you don't, some suppliers might allow you to pay a security deposit instead, though they are not obliged to agree. It's always worth discussing your options with your supplier if you wish to switch.
Benefits of Credit Mode (Standard vs. Direct Debit)
Once on a credit meter, you can typically choose between standard credit or Direct Debit payments.
| Payment Method | Description | Pros | Cons |
|---|---|---|---|
| Standard Credit | Pay for energy after consumption, usually monthly/quarterly bill. | You pay exactly for what you use. No money leaves your account until bill arrives. | Bills can fluctuate wildly (e.g., higher in winter). Can be harder to budget. |
| Direct Debit | Fixed monthly payment based on estimated annual usage. Supplier adjusts periodically. | Predictable monthly payments, easier budgeting. Often unlocks access to cheaper tariffs. | Can build up credit/debt if estimates are off. Requires regular meter readings to ensure accuracy. |
Tenant Rights and Landlord Permission
If you rent, you generally do not need your landlord's permission to switch from a prepayment meter to a credit meter. However, your tenancy agreement might stipulate that the meter needs to be reverted to its original state (prepayment) at the end of your tenancy, so it's always wise to check your contract or discuss it with your landlord to avoid potential issues when you eventually move out.
Finding Top-Up Locations
Should you remain on a prepayment meter, ensure you know where to top up. Post Offices, Payzone, and shops displaying the PayPoint logo are common locations across the UK. Online tools are available to help you find your nearest top-up point.
Switching Suppliers or Tariffs: Optimising Your New Home's Energy
Once you've settled into your new home and established your energy account, it's the perfect time to review your options and potentially switch to a more competitive tariff or a different supplier.
When to Switch
You can only switch tariff or supplier once you are officially responsible for the property, meaning you've taken ownership or signed your tenancy agreement. This typically means you'll pay at least one bill with the current supplier on their default tariff before you can make a change.
Exploring Your Tariff Options
The energy market offers various tariffs, from fixed-rate deals that lock in prices for a set period to variable tariffs that fluctuate with wholesale costs. Consider your budget, energy consumption habits (e.g., higher usage at night), and any specific needs (like being on a prepayment meter) when choosing. Utilise Ofgem-accredited comparison websites to find the best deals tailored to your circumstances.
The Switching Process and Timeframes
Switching suppliers is now a much quicker process than it once was. Your new supplier should complete the switch within 5 working days. They will handle all the administrative aspects with your old supplier, making it a relatively smooth transition for you. However, remember to provide accurate meter readings when requested by your new supplier to ensure a precise start to your new account.
Priority Services Register: Extra Support
If you're of state pension age, disabled, or have a long-term illness, you might be eligible for extra support by signing up to your new supplier's Priority Services Register (PSR). This can include services like free gas safety checks, advance notice of power cuts, and support if you struggle to read your meter. It's a valuable service designed to help vulnerable customers, so always enquire if you qualify.
Common Challenges and How to Overcome Them
Even with careful planning, sometimes things don't go exactly as expected. Knowing how to troubleshoot common energy-related issues when moving can save you stress.
Smart Meter Malfunctions
If your smart meter isn't working correctly or isn't sending readings automatically, contact your supplier. There are often simple troubleshooting steps you can take, or they may need to investigate further. It's important to resolve this to ensure accurate billing and to benefit fully from your smart meter's capabilities.
Disputes Over Bills or Readings
Should you disagree with your final bill from your old supplier, or your first bill from your new one, immediately contact the supplier to dispute it. Provide them with your meter reading records (dates, times, photos) as evidence. If you can't resolve the issue directly with the supplier, you can escalate your complaint to the Energy Ombudsman, an independent body that handles consumer complaints against energy companies.
Frequently Asked Questions About Energy Refunds and Moving
Q1: How long does it take to get a refund from my old energy supplier?
Once your old supplier has sent you your final bill, if it shows you're in credit, they are required to refund your money within 10 working days. This is a regulatory standard set by Ofgem. If you don't receive your refund within this timeframe, contact your supplier immediately to chase it up.
Q2: What happens if my old supplier doesn't send my final bill on time?
Your old supplier must send your final bill within six weeks of your moving date. If they fail to do so, they may owe you compensation. The amount of compensation varies and is subject to Ofgem's Guaranteed Standards of Performance. You should contact them to request the bill and enquire about any compensation you might be due.
Q3: Can I avoid an exit fee if I'm on a fixed tariff?
It depends on your supplier and contract. While many fixed tariffs include an 'exit fee' for early termination, some suppliers offer 'portable' fixed tariffs that allow you to transfer your contract to your new address without penalty. Always contact your current supplier to ask if this is an option for you. If not, weigh the exit fee against the potential savings of a new, cheaper tariff at your new property.
Q4: What should I do if my new home has a prepayment meter with existing debt?
Immediately contact the current energy supplier for your new home. Do NOT put money on the meter or use any existing keys/cards until you've spoken to them. Explain that you've just moved in and request that any debt owed by previous occupants is removed from the meter. Provide proof of your move-in date if necessary (e.g., tenancy agreement). Suppliers are obliged to ensure you don't pay for someone else's debt.
Q5: Do I need my landlord's permission to change from a prepayment meter to a credit meter?
Generally, no, you do not need your landlord's permission to change the payment method for your energy supply, as you are responsible for the energy bills. However, it's always advisable to check your tenancy agreement for any clauses regarding property alterations or utility meters. Some agreements might require meters to be returned to their original state at the end of the tenancy, which could incur a cost if you need to switch back.
Managing your energy accounts during a house move might seem daunting, but by following these clear steps, you can ensure a smooth transition and, crucially, reclaim any money you're owed. Being proactive and organised with your meter readings, supplier notifications, and bill reviews will not only save you potential financial headaches but also provide peace of mind as you settle into your new home. Remember, your money is yours, and with a little effort, you can ensure it stays in your pocket.
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