How to Set Up Your Bills
When you move in, the electricity/gas/water should all be working, you don't necessarily have to set up an account before you move in.
Electricity and gas will be supplied to your property when you move in by whoever the previous tenants' supplier was. What typically happens is the previous suppliers will send a letter addressed to "The Occupier" informing you that they are still supplying the property and would welcome your business if you wish to set up an account with them. You are not obliged to go with them just because they currently supply the property.
When it comes to setting up your own account, we normally point people in the direction of the MoneySavingExpert website to read through some literature of how it works and to find the best deals. They offer independent advice and guides on most day-to-day financial arrangements in the UK so may also be a useful resource going forward for other matters as well.
You do not have to have the same supplier for gas and electricity but the majority of times, a dual fuel fixed tariff with one supplier is cheaper than two separate tariffs with different suppliers.
You will need the following information to set up the account:
Who the account holders are - at least one of you needs to be named on the account but it may be more sensible to put all tenants on the contract as suppliers will typically only deal with whoever is named on the account. You should also be aware that in the event of non-payment, action will only be taken out against the named account holder(s) so only having one person named on the account is quite a high personal risk.
The name of the current supplier - if you haven't received any letters from the previous supplier, you can search for your electricity supplier on the (Manchester and surrounding areas only) Electricity Northwest website and your gas supplier on the FindMySupplier website. If you’re moving away from Manchester, to find your electricity supplier, you would need to find the network operator first and then use their website to find your supplier.
A recent meter reading and the date it was taken.
The date you became responsible for the bills - this is the start date of your tenancy, not the date you actually moved in, just in case they are different.
You might possibly need the meter serial numbers as well - these are located on the meters so just have a look and google how to find the serial number if you're not sure. Most of the time the supplier already has this on file so you might not need to give it to them. To find the actual meters it is best asking your new agent/landlord.
If you’re changing supplier, once you give all this information to the supplier you choose, they will contact the current supplier and take over so technically you don't need to speak to the previous tenants' supplier at any point, unless there is a period of use between you becoming responsible and your new supplier taking over.
You will typically have a choice of two types of tariff:
A fixed rate
This will typically be fixed for a period of 1 to 3 years and is not subject to the OFGEM price cap. For more information on the price cap, please read the notes at the bottom of this article.
The price you agree will be fixed for the duration of the contract so if energy prices rise, you’re safe. However, if they fall, you will still have to pay the higher agreed upon price.
Standard Variable Rate (SVR)
This is the default rate you will be put on if you don’t want a fixed term.
This is subject to the OFGEM price cap. However, the price cap gets updated every 3 months so it is possible you could have 3 rate increases during your 12 month tenancy just as you could have 3 decreases or a mixture of the two.
Moneysavingexpert also have a guide on which option may be better for you which we’d advise you read before you make a decision.
If you’re unsure how much energy your appliances are using or what is the most efficient way of cooking, for example, GoGompare made a helpful calculator so you can make a more informed choice.
Water is similar to electricity and gas in that it will already be supplied but you will likely have no choice as to who to go with as there is typically only one supplier. The only supplier in Manchester is United Utilities. For other areas in the country use the Water UK website. Again, the setup is similar to what we described above so you would need the water meter reading as well, if there is one. Not all properties have a meter, but typically the supplier will be able to tell you if there is one or not when you set up the account. Generally if you are living in an apartment or newer build, there will be a meter.
Internet is something that may be worth setting up before you move in because it takes a while for the connection to go live and equipment to arrive. What type of package you’ll need is entirely up to your personal preference. There are plenty of comparison sites available to find the best deals and MoneySavingExpert has a guide on this as well.
Council Tax is often overlooked but it is essential you register with your local council as soon as possible, even if you are still studying; while you may not be liable to pay it, the council still needs to register each individual at the property and prove the exemption. MCR Move registers their own tenants with the council but this is not common practice with letting agents and landlords, so it is best not to expect anyone to do it on your behalf. Failure to register or prove your exemption after registering can lead the council to quickly take action against you and you can rack up administrative and court fees that you will be liable for in both circumstances. If you are staying in Manchester, you can register on Manchester City Council’s website.
A TV Licence is mandatory if you have a TV or watch BBC iPlayer on any device. You only need one per property if you are on a joint tenancy and you can set it up on the TV Licensing website with different payment options. This can only be set up once your tenancy start date has passed. If you are on an individual room tenancy, you may need your own TV Licence, it is best to refer to their website for more information.
Best of luck in your new home.
Addendum 27/06/23
Below is some information on the current state of the energy market and the ongoing aftereffects of the invasion of Ukraine. While things have calmed down from this time last year, the market is still extremely volatile which could have an impact on how much you’re paying for energy during your tenancy. You may also have seen or heard a lot of talk about the OFGEM Price Cap and it’s important you understand what this is and how it will affect you in your new property even after you’ve set up your bills.
What is the OFGEM Price Cap?
First of all, a misleading name. It is a cap on the price of the two units that are the core of an energy bill (units of kWh and standing charges) that an energy supplier can charge you. VAT is chargeable at 5% on top of these units.
It is not a cap on the total amount an energy supplier can charge you - you will always have to pay for the energy you consume, there is no cap on this.
The price cap figure is based on estimated use of what an average property would pay with average use. Energy suppliers are relatively free to determine how they implement this, so they could have high standing charges but low unit prices or vice versa. As long as their sums don’t exceed the total figure of the price cap based on the average use figures, it’s allowed.
The cap is reviewed every 3 months and announced about 5 weeks before it is due to take effect. The current cap that has been announced takes effect on 01/07/23 and is set at £2074. While this is considerably lower from the peak of £4279 in January ‘23, it is still considerably higher than the £1277 before the invasion of Ukraine.
What this equates to for actual costs is around:
Electric
30p/kWh unit price
53p/day standing charge
Gas
8p/kWh unit price
29p standing charge
What else do you need to know about the current market?
When setting up an account with an energy supplier you would have typically had the option of taking a fixed tariff or a Standard Variable Tariff (SVR). A fixed tariff would mean you pay a fixed price per unit of energy you consume throughout the period of the contract (typically 1-3 years) and is not subject to the Price Cap. A variable tariff is subject to change whenever the supplier chooses to do so but cannot exceed the Price Cap. When you switch suppliers, it is typically to go on a fixed deal, and the SVR is what you get moved on to when that contract runs out. The SVR is also the default tariff you would be put on when setting up an account with the existing supplier to your new property.
Suppliers are mainly offering fixed price deals to existing customers so there is no guarantee you will be able to find one. This means that currently the majority of the country are on their supplier’s SVR rather than a fixed tariff, whereas in the past the SVR was almost always more expensive and the majority were on fixed deals.
What this means is that you may be stuck with the supplier who is currently supplying your new property on their SVR. Other suppliers may only want to take you on as a customer on a new fixed tariff and not as an SVR customer because that could currently be losing them money.
If you want to look into whether it may still be worth taking on a fixed deal rather than staying on the SVR, we are unable to advise on this but would point out that MoneySavingExpert’s energy guide is probably one of the more comprehensive independent guides on this and all other areas that we’re discussing.
