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Lack of competition in the Northern Ireland (NI) energy market could be costing customers millions of pounds each year.
There are currently only two gas and five electricity providers to switch to in NI, compared to more than 40 suppliers in England, Wales and Scotland. But despite the comparative lack of choice households could still save up to £145 annually by switching.
Only 221,200 households (28 per cent) in NI switched their supplier in the past 12 months, compared to a UK national average of 38 per cent. New research by Belfast-based outsourced customer contact specialist Echo Managed Services suggested the lack of competition in the NI energy market could be costing the region over £82 million each year.
The study also found almost two-thirds (65 per cent) of consumers said they would switch if prices increased significantly.
Jim White, Northern Ireland head of operations at Echo Managed Services, said: “In part, there’s a problem of competition – or lack thereof. Whilst fewer options can lead to an easier supplier decision, in reality it is costing people dear, and when energy suppliers raise their prices, consumers may feel they have little choice but to comply.
“However, our research shows a clear consumer appetite for switching, and there is a huge opportunity for start-up energy suppliers to enter and disrupt the market in Northern Ireland, as has been the case elsewhere.”
The research follows news of the recent 15 per cent price hike from Click Energy, which came into effect on 1 December, and increases from other suppliers in recent months.
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