You are here: Home - Household Bills - News -

Show energy customers savings to boost switching – Ofgem

Written by:
Disengaged energy customers are more likely to switch supplier if they are shown exactly how much money they can save, a pilot scheme by Ofgem suggests.

The regulator ran a trial involving 50,000 customers from Scottish Power who had been on a standard variable tariff for three years or more.

These customers received letters from Energyhelpline showing how much they could save by moving to an E.ON tariff negotiated by the price comparison service.

Customers did not have to provide information about their existing tariff to see their personalised savings calculation.

Overall, 22.4% of customers in the trial switched compared to 2.6% of the control group who received no information about the trial.

People who switched saved a total of £3.3m, with an average saving of £298 each.

Rob Salter-Church, Ofgem’s interim executive director for consumers and markets, said: “Many customers on poor value default deals rarely switch because they think it’s too much hassle, or might not realise how much they can save.

“The results of this trial demonstrate that offering a simplified collective switch and providing personalised savings can be a big help in giving these customers the confidence and reassurance they need to start a switch.”

Almost a quarter (24%) of the switches made through Energyhelpline were by customers over 75.

Collective switching tariffs are negotiated, usually through an auction, and offer a unique, discounted energy tariff.

The success of this pilot has prompted Ofgem to plan a larger collective switching trial involving over 200,000 customers later this autumn.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

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...

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

  • Discover how your pension can be used to make a range of investments with attractive tax advantages. By…
  • RT @Defaqto: Looking for your first job? We outline our top tips for understanding and improving your credit score. Take a look @YourMoney
  • @YourMoneyUK Biased. People don't look at this stuff rationally. They also would not buy annuities if there ware decent alternatives.

Read previous post:
Stock of the Week: Keller

Graham Spooner, investment research analyst at The Share Centre, picks Keller as stock of the week.