Energy customers more likely to switch provider

Energy consumers were among those most likely to switch service providers compared to other sectors in the 12 months to June, according government figures, as Energy UK confirmed electricity switching rebounded last month.

According to the Department for Business, Energy and Industrial Strategy’s (BEIS) latest public attitudes tracker energy was the second most popular product or service for switching, with 28 per cent saying they were most likely to have switched either provider or contract.

Car insurance was the most popular (34 per cent) while home insurance was the third most popular at 26 per cent.

Energy was also one of the most common products shopped around for (28 per cent). This compares to car insurance (41 per cent) and home insurance (33 per cent).

Online comparison sites or apps were most commonly used when shopping around for car insurance (76 per cent), home insurance (73 per cent) and energy (71 per cent). In comparison, those who shopped around for a mobile phone contract were most likely to visit the website of the individual provider or supplier (48 per cent).

Levels of trust were lowest for energy suppliers. Four in ten (41 per cent) people trusted energy suppliers a lot or a fair amount but almost half (48 per cent) said they did not trust them very much or did not trust them at all.

Meanwhile, trade body Energy UK’s latest electricity switching figures show that the number of customers switching supplier is continuing to recover after falls during the early months of the pandemic.

In July 2020, a total of 519,700 customers switched – a 17 per cent increase compared to June and only 1 per cent down on the same month last year.

The trade body added that so far this year a total of 3,447,234 customers have switched, which is 4 per cent lower than at this point in 2019.

According to the data, of all switches in July 2020 45 per cent were from larger to small and mid-tier suppliers, the highest since April 2019.

Meanwhile:

• 10 per cent were from small and mid-tier to larger suppliers
• 20 per cent were between larger suppliers
• 25 per cent were between small and mid-tier suppliers

Emma Pinchbeck, Energy UK’s chief executive, said: “It’s encouraging to see switching numbers continuing to pick up following an understandable slow down earlier in the year.

“Although Ofgem last week announced a forthcoming cut to the price cap, it’s still very much worth customers checking they’re on the best deal for them – either by contacting their own supplier or checking across the rest of a very competitive market.

“Improving the energy efficiency of homes is still the best way for customers to reduce bills over the longer term – so hopefully as many customers as possible will also be taking advantage of the government’s Green Home Grant when it gets underway.”