What is an energy referral bonus?
An energy referral bonus is a reward some suppliers pay when an existing customer refers a friend or family member who then switches to that supplier. Both people usually get something, not just the person doing the referring.
It works through a personal referral link or code. Share it, someone signs up through it, and once their switch completes, credit lands on both accounts. No cash normally changes hands, it’s applied as a bill credit instead.
None of this is regulated the way the price cap is. An energy referral bonus is entirely a supplier’s own marketing decision, which is why terms, amounts and even whether a scheme exists at all can differ wildly from one company to the next, and can change with little notice.
How much can you actually get from an energy referral bonus?
Amounts vary supplier to supplier and change over time, so treat any figure you see online as a snapshot rather than a promise. Historically, referral credit has tended to sit somewhere in the tens of pounds per switch, sometimes with a higher amount for switching both gas and electricity than for a single fuel.
Some suppliers cap how many friends you can refer, or how much total credit you can earn in a year. It’s worth reading the actual terms on your supplier’s referral page rather than going on what a forum post said six months ago, since these schemes get tweaked fairly often.
Which suppliers currently offer one?
Octopus Energy and EDF are among the suppliers that have run refer a friend schemes recently, each crediting both the existing customer and the new one once the switch goes through. Availability and terms shift, so the safest move is checking your own supplier’s website or app for their current referral offer rather than assuming it still matches what you last heard.
If your supplier doesn’t run one at all, that’s not unusual. Referral schemes are a marketing choice, not a regulatory requirement, so plenty of suppliers, particularly smaller ones focused purely on low prices, skip them entirely.
Some suppliers advertise their energy referral bonus prominently on their homepage, others bury it in the account dashboard once you’re already a customer. If you can’t find one listed publicly, it’s worth logging into your online account and checking the referrals or rewards section before assuming there isn’t one.
Energy referral bonuses at a glance
- Both the referrer and the new customer usually get a bill credit.
- Amounts have typically sat in the tens of pounds range, not hundreds.
- Applied as account credit, not cash, in most cases.
- Terms and availability change often, so check your supplier’s current page.
- Not every supplier offers one, it’s a marketing choice, not a rule.
What are the catches to watch for?
The referred friend usually has to be a genuinely new customer to that supplier, not someone switching back after a previous stint. Most schemes also require both accounts to stay open for a minimum period before credit is confirmed, so a quick switch away can sometimes forfeit the reward.
Read the small print on tax too. MoneySavingExpert’s guide to supplier rewards schemes flags that referral rewards have occasionally attracted VAT scrutiny in other sectors, which is a reminder that these schemes are commercial promotions with real terms behind them, not informal freebies.
Don’t let a referral bonus be the deciding factor on its own. A one off credit worth a modest sum matters far less over a year than whether the tariff itself is actually competitive against what else is on the market.
It’s also worth checking whether the referral credit is genuinely on top of the standard tariff, or whether the “new customer” rate you’d get through a referral link is actually worse than what’s openly advertised elsewhere. An energy referral bonus that nudges you onto a pricier deal isn’t really a bonus at all.
Is it worth switching supplier just for an energy referral bonus?
Not on its own, no. Compare the underlying tariff first using our energy price cap guide and our piece on the average UK energy bill to see where you’d actually land, then treat any referral credit as a modest bonus on top of a switch you’d have made anyway.
If you were already planning to switch, checking whether a friend’s referral link gets you both a bit of credit costs nothing extra. Our guide to switching energy supplier covers the wider process if you haven’t compared deals in a while. If a supplier’s whole pitch rests on the referral bonus rather than its rates, that’s worth treating as a small warning sign rather than a reason to sign up.
Frequently asked questions about energy referral bonuses
- Do I have to pay tax on an energy referral bonus?
- Most bill credits aren’t treated as taxable income for ordinary household referrals, but rules can vary, so check your supplier’s terms if you’re referring a lot of people.
- Can I refer myself using a second email address?
- No, suppliers typically require the referred person to be a genuinely separate, new customer, and most have systems to catch self referrals.
- What happens if my friend switches away quickly?
- Many schemes require a minimum period on supply before credit is confirmed, so an early switch away can mean the referral bonus doesn’t get paid.
- Is the referral bonus the same for gas and electricity?
- Not always. Some suppliers pay more for switching both fuels than for a single one, so check the specific terms rather than assuming a flat amount.
- Do all energy suppliers offer a referral scheme?
- No, it’s entirely optional for suppliers. Some run generous schemes, others focus purely on keeping prices low instead.
Doing nothing means leaving a bit of free credit on the table if you were switching anyway. It’s a nice extra, not a reason to switch on its own.
