Electricity switching hit three-year low in May

Electricity switching in Great Britain took a further dip last month as the coronavirus pandemic continued to affect consumer behaviour.

The figures from Electralink’s Energy Market Data Hub show switches between energy suppliers in May decreased both year-on-year and month-on-month.

Last month saw the lowest number of switches in May since 2017. In total, 436,000 switches took place – 11 per cent less than May 2019 and 10 per cent less than April 2020.

Although the number of switches commenced in May did rise to 504,000 – a 2 per cent increase on April 2020’s low – this is still a considerable drop when compared to the same month in the previous two years – 8.5 per cent less than May 2018 and 13 per cent less than May 2019.

Electralink says the only type of switching up month-on-month was between challenger brands, whereas all others saw a decrease:

• Big six to big six switches hit 113,000 – six per cent less than May 2019 and 26 per cent of May 2020’s total switches completed
• Big six to challenger switches fell to 149,000 – 25 per cent less than May 2019 and 34 per cent of May 2020’s total switches completed
• Challenger to big six switches landed at 60,000 – 2.5 per cent more than May 2019 and 14 per cent of May 2020’s total switches completed
• Challenger to challenger switches reached 115,000 – one per cent more than May 2019 and 26 per cent of May 2020’s total switches completed

Meanwhile, Energy UK has released its latest switching figures for May. The trade body reported 414,562 as taking place during the month – a 15 per cent decrease year-on-year and the lowest figure reported for May since 2016.

The organisation said the discrepancies between the two sets of figures likely arise from differences in their definitions of switches, including when they are judged to have been completed, as well as the way they are reported.

Energy UK’s latest numbers also reveal that in the first five months of the year, nearly 2.5 million customers moved to a new supplier – a 5 per cent decrease when compared to the same period in 2019.

In May 2020, of all switches recorded by Energy UK:

• 37 per cent were from larger to small and mid-tier suppliers
• 13 per cent were from small and mid-tier to larger suppliers
• 27 per cent were between larger suppliers
• 23 per cent were between small and mid-tier suppliers

The trade body’s interim chief executive, Audrey Gallacher, said: “While it is not surprising that switching levels are slightly down during the lockdown, there will be many people who will face financial difficulties as a result of the pandemic, so it is important to remember there are ways you can save money on your energy bill, either by checking you are on the right deal with your current supplier or by shopping around.

“More importantly, I’d encourage everyone to make sure that your homes are energy efficient which is the best way to keep your bill down for the longer-term and also help the environment.”