Customers switching suppliers at highest level since crisis

The number of customers switching energy supplier is at the highest level since October 2021.

Energy UK’s electricity switching figures show that 213,020 customers switched to a new supplier last month.

It is the first time the numbers have passed above 200,000 since before the crisis and is the highest recorded number of switches for 21 months.

It is also an 83% increase compared to the same period last year.

Despite the uptick in people switching supplier, Energy UK stated that “increases remain modest”.

Prior to the energy crisis, the number of customers switching supplier each month often exceeded 400,000. In June, Energy UK said that “there is no sign the numbers will return to historic levels any time soon”.

It is also a long way off the forecasted possible surge predicted by analysts earlier this year.

This latest dataset is from the first month after the price cap fell below the Energy Price Guarantee, which prompted some suppliers to offer fixed price deals below the cap.

However, Robert Buckley, head of relationship development at Cornwall Insight, recently told Utility Week that consumers should be wary about taking fixed priced deals due to the volatile nature of the market.

He added: “While our cap numbers out for the next couple of quarters are below £2,000 at the moment, we have got no surety that that will continue.”

Of the 213,020 switches recorded last month, more than half (58%) saw customers move between large suppliers.

Almost a quarter (22%) saw customers move from a large supplier to a small firm while 14% went the other way.

Movement between supplier groups in July 2023:

• 22% were from larger to small and mid-tier suppliers
• 14% were from small and mid-tier to larger suppliers
• 58% were between larger suppliers
• 5% were between small and mid-tier suppliers