You are here: Home - Household Bills - News -

Millions put off switching energy after string of firms collapse

0
Written by: Paloma Kubiak
12/12/2019
More than five million households have been deterred from switching energy supplier following a spate of firms going bust.

Over a million people have been impacted by the failure of 14 energy firms in the past two years.

And one in five people, the equivalent of 5.5 million households, have been put off switching energy firms as a result, according to Comparethemarket.com research.

However, geographically, the number of customers put off switching jumps to nearly one in four energy customers in the West Midlands (24%) and the North East (24%).

For 13%, they’ll only switch to larger, better-known providers, and 7% said they won’t switch to a smaller energy supplier.

Based on its customer data, Comparethemarket.com found that in the past three months, the number of switches to larger suppliers has outstripped the move to smaller firms.

But it added that engagement in energy switching is relatively low as one in four have never switched supplier and 21% last switched more than three years ago.

Peter Earl, head of energy at Comparethemarket.com, said: “It is hardly surprising that the catalogue of supplier collapses in the past two years is having a negative impact on people’s decisions when it comes to choosing an energy supplier. Engagement in switching is already low despite the considerable savings that can be made by changing supplier regularly, with the roll call of supplier failures further fuelling inertia.

“Proposals outlined by the regulator to implement new financial checks and tests for existing energy providers should be fast-tracked to prevent the stain of supplier collapses on the industry becoming a permanent fixture. Consumer confidence is already damaged, but action is required now to reassure energy customers in 2020 and beyond that the issue of supplier collapses is being treated with the seriousness it deserves.”

List of suppliers which have collapsed:

  • January 2018: Future Energy – 10,000 customers
  • July 2018: Iresa – 100,000 customers
  • September 2018: Gen4u – 500 customers
  • October 2018: Usio Energy – 7,000 customers
  • November 2018: Extra Energy – 108,000 customers
  • November 2018: Spark Energy – 290,000 customers
  • December 2018: OneSelect – 36,000 customers
  • January 2019: Economy Energy – 235,000 customers
  • January 2019: Our Power – 38,000 customers
  • March 2019: Brilliant Energy – 17,000 customers
  • August 2019: Cardiff Energy Supply – 800 customers
  • August 2019: Solarplicity – 7,500 customers
  • September 2019: Eversmart – 29,000 customers
  • October 2019: Toto Energy – 134,000 customers

There are 0 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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

Money Tips of the Week

  • With many nervous about taking an overseas trip, Brits are booking up holidays closer to home. But should you buy t… https://t.co/mCuICBPUdr
  • The Government has announced more than 300 “shovel-ready” projects in England will share a £900m investment to buil… https://t.co/xwxpmgetvw
  • @YourMoneyUK I guess it the @ThomasCookUK staff in the firing line again?

Read previous post:
energy bills
Bill errors top complaint by energy users

Energy customers struggle to get accurate bills, with errors the most common complaint, according to a leading charity.

Close