Household Bills
Six million households stuck with energy supplier they didn’t pick
Almost six million households remain with an energy provider they didn’t choose, after their previous firm failed.
Nearly two years on from when the energy crisis began to unfold, millions of billpayers are stuck with a supplier chosen for them by regulator Ofgem as part of its Supplier of Last Resort policy.
As energy prices soared, suppliers withdrew their fixed deals and switching stalled, leaving the majority on standard variable tariffs, rising in line with the price cap or Energy Price Guarantee.
According to research from comparison site Uswitch, there’s a big difference in the satisfaction levels of customers who choose their own suppliers and those who didn’t get a choice.
Two thirds (64%) who picked their own supplier are happy with the service received, compared to 52% who were forced with a particular provider.
Recently a small number of suppliers have come out to offer fixed deals existing customers, while Uswitch launched its first limited fixed energy deal – available to new customers – and available to existing customers directly through So Energy.
As the energy price cap is due to fall to £2,074 for the average dual fuel household paying by direct debit in July as wholesale energy prices decline, Uswitch said suppliers should be in a better position to start offering fixed deals.
14 million ready to switch supplier
Billpayers are also keen to see competition in the market return, with 14 million wanting to switch to a fixed tariff to get certainty over their costs.
Meanwhile, 72% said they would switch supplier if they could get a cheaper deal elsewhere, while 16% would also transfer out to get better customer service.
Richard Neudegg, director of regulation at Uswitch.com, said: “Millions of households have been transferred to suppliers they didn’t choose due to their previous provider falling through the cracks of the energy crisis.
“So, it’s no surprise that these customers are the most dissatisfied and eager to switch to a supplier of their own choosing.
“Limited deals are now starting to become available, but the ‘fix window’ may be small, so households need to be prepared to move quickly if they want the price certainty.”
