Shrewd consumers are well versed in jumping between credit cards in pursuit of the best deal. But the recent explosion of switching services means you can now compare and swap anything, from utility providers to current accounts and loans to broadband services. The most frantic swapping at the moment is between utility providers as consumers try to limit the cost of soaring energy prices. Uswitch, the comparison and switching website, estimates that 150,000 consumers are switching energy providers each month. But how do you make sure you are getting a good deal and is it really worth the hassle?

Why should I switch energy provider?
Consumers have faced steep increases in gas and electricity costs over the past year, as suppliers have passed on rises in wholesale prices. Last week Centrica, which owns British Gas, said it would raise energy prices by 22 per cent. Scottish Power also plans to raise gas prices by 15 per cent and electricity prices by 8 per cent while Npower, Scottish & Southern Energy and Powergen have all raised prices recently.

Uswitch says around half of the UK’s 26m households are still signed up to the most expensive contracts so by shopping around you could find a better service elsewhere.

Where should I start if I want to swap my energy provider?
A number of websites allow you to compare service providers and deals. Uswitch.com and simplyswitch.com cover utilities and day-to-day services, while more specialised sites such as energyhelpline.com and theenergyshop.com focus on helping consumers obtain the best energy deals. The sites provide details of different suppliers’ services and tariffs, along with news and information on the energy market.

So how do these sites work?
You enter the details of your current energy provider, how much you spend on your bills, how you normally pay and information about your home. You can then search the current deals by either price or service rating. The sites will bring up plans from different providers and tell you how much you would save by switching to each.

So how much could I save?
Uswitch estimates that the average household could save £140 on its annual energy bill.

What are the best deals at the moment?
There is a wide range of contracts available. Large numbers of consumers are switching to capped price plans to protect themselves against future prices hikes. These set an upper limit on the price you pay per unit of gas or electricity, usually for 18 months to two years, while still allowing you to benefit if prices fall. These do, however, come at a premium to standard rates.

Companies are also offering fixed plans, which are similar to capped but the rate you pay will not come down if general prices do.

What kind of choice do these websites offer?
These sites generally have commercial links with a number of suppliers so you may not be getting access to the whole market. Uswitch, for example, does not give the option of switching to British Gas, but it does provide information on British Gas services. The sites take a small commission from the energy company when you switch via their website.

How long does it take to switch?
It could take four to six weeks as you may have a cancellation period with your existing provider.

How does the process work?
Once you have chosen a deal you supply all your details online, and these are forwarded to your new supplier. It will then contact your existing supplier to arrange the transfer and will contact you to confirm the date on which your new service will commence. You will have to take a meter reading on this date, to ensure you are not billed twice for the same energy.

Could anything go wrong?
Some consumers fear that switching might risk being cut off or being charged twice. These problems are less likely with online switching services as they guide you through the process and get in touch with the providers on your behalf.

I switched a couple of years ago so is it worth me looking again?
Probably yes. Companies regularly change their offers. Some switching services also have exclusive deals that are not available directly from the supplier.

If I switch could prices go up soon after?
Yes. Few – if any – companies have deals that guarantee prices, although capped deals mean they will not rise beyond a certain threshold. It is always worth keeping an eye on the market.

So I won’t be locked into a contract?
Generally no. The standard contract with any provider is just 28 days’ notice. However it is worth checking – some fixed-price deals may impose exit penalties within a certain timeframe.

Are there any instances where I wouldn’t be able to switch?
Probably only if you have a large outstanding debt to your existing provider.

Any other tips?
Read the small print of the new contract. Also if you pay your existing provider by direct debit it’s a good idea to keep this in place until the switch is complete so final charges can be taken without complication.