This decision typically arises when your fixed energy tariff is about to expire. At that moment, you are presented with two main options:
Accept a renewal offer from your existing supplier.
Compare energy deals and switch to a new provider.
Many customers choose renewal because it feels easier. But easy does not always mean cost-effective.
In this guide, we will explain from first principles:
What energy renewal actually means
What switching involves
How pricing structures differ
The risks and advantages of each option
How to compare both objectively
The goal is to ensure you make a financially informed decision — not an automatic one.
Renewal
Stay with your current supplier
Switching
Move to a new provider
First Principles: What Happens When a Fixed Energy Contract Ends?
A fixed energy contract locks in:
Unit rate (price per kWh)
Standing charge
Contract duration
When the contract ends:
Your fixed pricing protection ends.
Your supplier may offer a renewal tariff.
If you take no action, you are usually moved onto a standard variable tariff (SVT).
The key decision point is whether to accept renewal or switch.
What Is Energy Renewal?
Energy Renewal
Energy renewal means staying with your current supplier and agreeing to a new tariff.
This may involve:
- A new fixed-term contract
- A different fixed rate
- A revised standing charge
- New exit fee terms
Renewal offers are often presented as "loyalty deals" or "exclusive customer offers."
However, renewal pricing is not always the most competitive in the wider market.
Energy Switching
Switching energy supplier means:
- Ending your relationship with your current provider
- Choosing a new supplier
- Agreeing to a new tariff
- Transferring billing responsibility
Importantly: Switching does not change your physical supply. The electricity and gas grid remains the same. There is no disruption to service. Switching is administrative — not physical.
Why Renewal and Switching Prices May Differ
Energy suppliers operate in a competitive market.
To attract new customers, suppliers often:
Offer competitive fixed-rate deals
Provide promotional tariffs
Price aggressively for market share
Existing customers may receive renewal offers that are:
Slightly higher than new customer deals
Less competitive than market alternatives
This is not always the case — but it is common enough that comparison is essential.
Comparing Energy Renewal vs Switching: The Financial Framework
At Utility King, we recommend comparing both options using one simple metric:
Calculate:
(Annual usage × Unit rate) + (Standing charge × 365)
Do this for:
Your renewal offer
The best available market alternatives
Ignore marketing headlines. Focus on annual total cost.
Advantages of Energy Renewal
There are legitimate reasons some customers choose renewal.
- Simplicity — No need to provide additional details or manage a switch process.
- Service Familiarity — If you are satisfied with customer support, staying may reduce uncertainty.
- Minimal Administrative Effort — Renewal is often a one-click confirmation.
However, convenience should be weighed against potential cost differences.
Advantages of Switching Energy Supplier
Switching may offer:
- Lower Pricing — New customer deals are often competitively priced.
- Better Tariff Structures — You may find lower standing charges, more suitable contract lengths, time-of-use options, EV or heat pump tariffs.
- Service Improvements — Switching can resolve issues with poor customer service.
Switching is often the more proactive financial strategy.
The Risk of Doing Nothing
The worst option is often inaction.
If you neither renew nor switch:
You are typically moved onto a standard variable tariff.
Rates may increase.
Price protection ends.
Standard variable tariffs offer flexibility but are often more expensive long-term.
Passive rollover is rarely cost-effective.
When Renewal Might Make Sense
Renewal may be the right choice if:
- The offer matches or beats market pricing.
- You value stability with a trusted supplier.
- The difference between renewal and switching is minimal.
- Market conditions are volatile and renewal is competitive.
Renewal should be a conscious decision — not a default one.
When Switching Is Likely the Better Option
Switching often makes sense if:
- The renewal offer is significantly higher than market alternatives.
- Your current supplier has poor service ratings.
- You want a different tariff structure (e.g., time-of-use, EV, or solar export).
- You are currently on a standard variable tariff.
Switching is especially powerful during renewal windows when exit fees no longer apply.
Is It Safe to Switch During Renewal Period?
Yes.
Switching energy suppliers:
Does not interrupt supply.
Does not require infrastructure changes.
Is regulated and protected.
Includes a cooling-off period.
The process typically takes 2–5 weeks. Supply continuity is guaranteed.
Utility King's Perspective
At Utility King, we believe renewal should never be automatic.
The renewal window is your strongest negotiating position in the energy market.
We recommend:
Obtain your renewal offer.
Compare total annual cost against market deals.
Evaluate service quality and contract terms.
Make a deliberate choice.
Energy suppliers expect customers to compare. The households that save the most are those who treat contract expiry as a financial opportunity — not a passive event.
Renewal is about convenience. Switching is about competitiveness. The right decision depends on the numbers.
Frequently Asked Questions
Is renewing easier than switching?
Yes, but easier does not always mean cheaper.
Are renewal offers usually more expensive?
Often, but not always. Comparison is essential.
Can I switch during my renewal window?
Yes, usually without exit fees if you are near contract end.
Does switching affect my energy supply?
No. Your electricity and gas continue uninterrupted.
Should I renew if the price difference is small?
That depends on how much you value convenience versus savings.
How often should I compare renewal offers?
Every time your fixed contract ends.