For consumers, switching bonuses can look generous and tempting. For suppliers, they are a calculated acquisition cost. The problem is that not all switching bonuses create real savings. Some genuinely reduce your overall energy costs, while others simply distract from higher unit rates or long contracts.
Typical bonus value
Days until paid
Month contract length
Miss bonus conditions
An energy switching bonus is a one-off incentive offered when you move from one supplier to another and stay on supply for a minimum period.
Unlike cheaper tariffs, a switching bonus does not reduce the price of energy you use. It is a separate reward layered on top of the tariff.
Bonuses are designed to:
They are marketing incentives — not automatic savings.
Paid directly to your bank account
Applied to your energy account
Retail or digital rewards
A £100 voucher is not always worth £100 to every household.
Bonuses are never instant.
If you cancel early, miss payments, or switch again too soon — the bonus is usually lost.
Lowering unit rates affects every customer, old and new. Offering bonuses targets new customers only.
Existing customers aren't impacted by bonus offers
Long-term pricing remains profitable
Bonuses require commitment
Bonuses are cheaper than permanent discounts
Bonuses are cheaper for suppliers than permanent discounts.
Focusing on the bonus size instead of total cost.
A £150 switching bonus can be wiped out by:
Deal B is cheaper — even without incentives.
Many bonus deals come with exit fees, especially on fixed tariffs.
If exit fees are £100–£200, they can cancel out the bonus entirely.
Bonuses matter less because:
⚠️ Bonuses should never replace competitive pricing
Bonuses matter more because:
✅ Bonuses can be valuable for low-usage homes
Most bonuses are tied to fixed tariffs because suppliers want commitment.
Switching bonuses:
The price cap limits rates, not incentives.
Yes.
See bonus amounts
Compare tariffs
Calculate annual costs
Contact details are only required when:
UtilityKing does not force contact details just to browse bonuses.
In these cases, bonuses genuinely increase savings.
A bad tariff with a bonus is still a bad deal.
UtilityKing shows bonuses clearly and transparently, calculates total annual cost after bonuses, compares bonus and non-bonus deals equally, and avoids teaser incentives that hide higher prices. Bonuses are treated as secondary, not primary.
Only if all terms are met and you stay on supply long enough. Miss a condition, lose the reward.
No, they are separate incentives layered on top of the tariff.
Yes, if you leave early or breach conditions. Always read the terms carefully.
No, household energy switching bonuses are not taxable.
Yes — once conditions are met and the bonus is paid, you're free to switch again.
Yes, if you wouldn't have spent that money anyway. Cash offers maximum flexibility.
Energy switching bonuses can increase savings, reward loyalty, and offset switching hassle. But they should never be the main reason for choosing a tariff.
The best deal is still the one with the lowest total annual cost, with bonuses treated as a bonus — nothing more.
See real prices, real incentives, and real savings — not marketing distractions.
🎁 BONUS SMART CHECKLIST
No contact details required to browse • Transparent bonus comparison • Ofgem accredited