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March saw an increase of more than 50 per cent in the number of customers switching energy supplier compared with the same period last year.
A total 417,000 households changed supplier last month, over 100,000 more than in February, of which 97,702 customers switching to independent companies.
Trade association Energy UK hailed the “substantial increase” as “proof that the industry is working”. The group said the figures show better awareness triggered by falling prices, increased competition and the government’s ‘Power to Switch’ campaign.
Chief executive Lawrence Slade said: “It is great to see customers looking around to find deals to suit them and there are more suppliers than ever to choose from.”
Switching has seen a dramatic increase recently, with government data revealing that the number of switches in February shot up to 317,000, in correlation with price cuts from all the major energy suppliers.
Eon was the first of the big six to cut its standard gas tariff by 3.5 per cent on 13 January, followed by British Gas (5 per cent), Scottish Power (4.8 per cent), Npower (5.1 per cent), SSE (4.1 per cent) and EDF (1.3 per cent) over the rest of the month.
In January, Ofgem strengthened its code of conduct for price comparison websites, requiring them to show all available tariffs, use simple language and make it clear which energy companies they have commission arrangements.
Despite this, the regulator came under fire from MPs for taking a “hands-off” approach to the regulation of “misleading” comparison sites and was advised to establish either a new licence-based system for sites, or a licence requirement on suppliers to use only accredited sites.
The number of switches to small suppliers is ever-increasing, exceeding 50 per cent for the first time in May last year. A recent survey by Ernst & Young revealed 37 per cent of consumers intending to switch would choose to move to a small supplier, compared with 24 per cent who would choose the big six.
Read Utility Week’s analysis on new energy players here.
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