Energy switching services are a kind of company that has come to exist since the EU began deregulating the gas and electricity markets, to open them to international competition, in 1996. Progress has been uneven across member countries, but in the UK there is now open competition among suppliers. Pricing structures and special offers are often complicated enough that it's not obvious which supplier and tariff will be best value for a consumer. This has provided an opportunity for specialist price comparison services. These are chiefly offered by companies who will manage a change to a different supplier and tariff, as well as advising on the best one. These companies primarily operate over the Web, although some also offer an ancillary telephone service.

Regulation

Energy switching companies usually operate on a commission model, where they are paid a flat fee by a supplier for each customer that they persuade to switch. This has been the cause of some controversy. In order to ensure that advice remains impartial, energywatch, the UK gas and electricity watchdog, operates a voluntary code of conduct. To be accredited under the code, switching companies must satisfy Energywatch that:

1. They are independent of gas and electricity suppliers, do not accept advertisements, and state where they receive commission
2. They include like for like
   Like for like
   Like for like growth is a measure of growth in sales, adjusted for new or divested businesses. This is a widely-used indicator of retailers' current trading performance. The adjustment is important in businesses that show a significant dynamic of expansion, disposals or closures...
   
    price comparisons for all currently available tariffs for all licensed suppliers (for gas, electricity and dual fuel)
3. They run their own website and use their own tariff database and calculator
4. The payment methods offered include standard credit by cash/cheque, monthly and quarterly direct debit, and prepayment meter
5. They must list prices from no fewer than five of the cheapest suppliers, and the prices must include VAT
   Vat
   Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
   
   
6. They provide, or direct customers towards, information on quality of service issues and energy efficiency programmes
7. They provide accurate price comparisons and state when prices were last updated.