Millions of renters could be missing out on cheaper energy deals because they do not realise they have the right to choose their own supplier. Tenants who pay their own gas and electricity bills can switch energy supplier without their landlord simply blocking the move, according to a warning from the energy regulator.
Ofgem has reminded renters that a landlord or letting agent cannot unreasonably prevent them from switching supplier if they are responsible for paying the household energy bills. The intervention could prove particularly useful for households trying to cut costs as energy remains one of the biggest expenses faced by renters.
Ofgem's guidance on switching
Ofgem said: "If you rent and are responsible for paying your energy bills, your landlord or letting agent cannot unreasonably prevent you from switching suppliers." The regulator's guidance makes clear that if the tenant is responsible for the energy bill, they can choose both the supplier and tariff.
Renters are advised to check their tenancy agreement before making the switch. Some contracts contain what is known as a default supplier clause, which can specify a preferred energy company.
Check your tenancy agreement
Ofgem says tenants should check whether their agreement includes such a clause, whether the list of suppliers can be changed and whether they need to tell their landlord or letting agent about a switch.
Some agreements may also contain a notice and return clause, requiring the tenant to switch the property back to its original supplier when the tenancy ends. But where the tenant is paying the bills, Ofgem's guidance confirms that they have the right to choose their supplier and tariff.
How to switch
The process can be relatively straightforward. Once a tenant has found a deal, the new supplier will normally handle the switch. You will need information from your existing energy bill, including your postcode, your current energy supplier, your current tariff, the price you pay per kWh, and how much energy you use each year.
Ofgem says a household switch should take up to five working days. New domestic energy contracts can also generally be cancelled within 14 days if you change your mind.
Switching while in debt
Importantly, you don't necessarily have to stay put if you're in debt. Renters who owe money to their existing supplier may still be able to switch. If the debt is less than 28 days old, Ofgem says the household can switch and the outstanding amount will be added to the final bill.
If the debt has been outstanding for more than 28 days, the supplier can prevent the switch until the debt is repaid. There is also a specific protection for people using prepayment meters. A customer can still switch if they owe up to £500 for gas and £500 for electricity.
What if your landlord pays the energy bill?
The situation is different if the landlord is actually responsible for the energy account. Ofgem says a landlord may pay the supplier directly and reclaim the cost from the tenant, include energy within the rent, or remain responsible for the supply between tenancies.
In these circumstances, renters should check their tenancy agreement and the rules governing what a landlord can charge for energy. Ofgem's advice is a reminder that renting a property does not automatically mean surrendering control of your energy supplier.
And with Ofgem listing a number of accredited comparison websites, it is worth checking whether a cheaper deal is available before simply accepting the existing tariff. Tenants should also take meter readings when moving into and out of a property and keep copies of their bills and correspondence.
