You are here: Home - Household Bills - News -

Three million households switch energy supplier this year

0
Written by: John Fitzsimons
11/08/2017
There has been a significant increase in the numbers switching energy supplier. With prices on the rise, should you join them?

That’s according to figures from industry trade body Energy UK, and represents a 14% jump on the same period in 2016.

Last month alone 385,000 households moved energy supplier, up by 16% on July last year.

What’s more, there has been a significant move away from the ‘Big Six’ energy suppliers – British Gas, E.ON, EDF Energy, Npower, Scottish Power and SSE – with one in five switchers opting to sign up with a small or medium-sized supplier.

Lawrence Slade, chief executive of Energy UK, said it was “fantastic” to see so many people actively switching supplier.

He said: “There are now over 50 suppliers to choose from, which is driving innovation, improvements to customer service and providing an incentive to keep prices competitive as suppliers fight to keep and attract customers.”

Switching has become easier

Levels of energy switching have improved in recent years, in part due to the introduction of the Energy Switch Guarantee. Around three quarters of suppliers have signed up to the guarantee, which is a series of pledges aimed at making moving supplier much faster and easier.

Commitments include completing the switch within 21 days (including a 14-day ‘cooling-off period’ after you sign up for a new deal), that your service will not be interrupted, and that your new supplier will handle all communication with your old supplier.

Nonetheless, many households feel switching is not worth it or is too much hassle. Research from campaign group Which? found that a quarter of households have always been with the same supplier, with supplier loyalty most common among older people. For example, one in five people over 75 have never switched energy supplier.

The largest suppliers are the biggest beneficiaries of this loyalty, according to Which?, with nearly half of British Gas customers admitting they have never switched, followed by SSE with 24% of customers. Even 15% of Scottish Power customers are lifelong customers.

Energy price rises

No matter how frequently you switch, now may be a good time to shop around for a new energy tariff, as all of the ‘Big Six’ suppliers have announced price rises for 2017.

British Gas was the last of the pack, announcing electricity prices would rise by 12.5%. The price hike, which will affect more than three million customers, will take place on 15 September and will see the price of an average dual fuel bill rise by around £76 a year.

These price rises only affect customers on a supplier’s standard tariff however; this is the tariff customers move onto after an initial fixed tariff comes to an end. So you can protect yourself from further price rises for a year or more by moving to a new fixed tariff.

And with uSwitch research suggesting three in 10 Brits – the equivalent of eight million households – have already turned the heating on following the unseasonal weather, now may be a good time to compare tariffs.

See YourMoney.com’s A guide to switching energy provider for more information on the process.

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.
  • Dennis

    I have been with British gas for years but because of the price hike coming I decided it is time I looked for a better deal.

    Boy did I found one, amazingly I’ll save £200 a year with bulb compared to British gas. Bulb are 100% green energy low profit and for the community company!

    If you swap to bulb you get £50 credit on your energy if you use the link below.

    http://bit*.*do/get-fifty-pound-credit
    (remove the * when you paste this in the browser)

    Enough of me, you should try getting a quote and see what you can save don’t forget to use the link!
    http://bit*.*do/get-fifty-pound-credit

    It is so easy to switch, it took literally 5 minutes. There is no need to thank me just go and enjoy your cheaper energy!

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
robo-advice
BLOG: Is automation an opportunity or a threat?

As automation advances, concerns are mounting over the security of human jobs. But should we worry and is there a...

Close