Energy switching hits new high but most households still on expensive tariffs
In total for September, 547,660 electricity accounts were switched, a 12% increase from the previous month.
According to Energy UK, customers are taking advantage of the deals available from over 70 suppliers in the market. And 31% (172,193) of all electricity switches were to small and mid-size providers.
Lawrence Slade, chief executive of Energy UK, said: “Our hope is that consumers will continue to take advantage of the ever-growing competition and choice and significant savings that are available by either contacting their existing supplier or shopping around for the right deal for them whether that’s a green tariff, cheaper deal or better customer service”
Richard Neudegg, head of regulation at uSwitch.com, said households have clearly woken up to the fact that power is in their hands when it comes to getting a better energy deal.
“The cheapest plan on the market today is £300 cheaper than the average standard tariff from the ‘Big Six’ suppliers, which is a huge saving ahead of the cold, dark winter months.”
However, Amanda Cumine from automatic switching service weflip, said that while it’s encouraging to see switching hit an annual high last month, the majority of households are sat on expensive default tariffs and are overpaying for their energy as a result.
“There are more than 15 million British households on poor value default tariffs, who could be overpaying by an average of £352 each year, a collective £5.3bn wasted. This shows that inertia and customer confusion is still a paramount issue in the energy market that needs to be tackled.
“Our message to people is simple; if you’ve been with your supplier for more than a year, the chances are you could be getting a better deal, even from your own provider, and that you could be costing yourself hundreds of pounds a year.”