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The number of customers switching supplier has risen by 14 per cent, according to the latest figures from Energy UK.
Nearly 400,000 customers changed provider in January, after a record 5.5 million customers switched in 2017, the trade body claimed.
The figures showed 36 per cent of customers switched from a larger supplier to a small and mid-tier supplier, while 11 per cent moved from small and mid-tier to larger suppliers.
Customers switching between larger suppliers accounted for 32 per cent and 21 per cent were between small and mid-tier suppliers.
In December, the net gain by small and mid-tier suppliers was 98,302, representing a quarter of all switches.
Lawrence Slade, chief executive of Energy UK, said: “It’s great to see 2018 picking up where 2017 left off. There’s real momentum behind switching as more and more customers find they can save money on their energy bills by taking advantage of the competition and choice that is out there.”
Gillian Cooper head of retail energy markets at Citizens Advice said while the rise was positive, some customers may not be aware of switching options.
She said: “It’s positive news that switching levels are rising. Households can save up to £300 by shopping around for better deals.
“However, our research also shows that too often it’s those on low incomes, the elderly and those who may be vulnerable who are the least likely to switch, and as a result end up on expensive default tariffs.”
She added: “While an increase in the number of people switching is welcome news, action by government, including the implementation of an absolute market wide cap, is still required.”
A spokesperson for Ofgem, said: “Switching rates are at a near 10-year high, as more consumers, including those on the most expensive tariffs, switch to save money on their energy bills.
“As competition intensifies, and suppliers come forward with new business models, there is now a bigger choice than ever of better deals to choose from.”
Earlier this week, Ofgem revealed it has decided to press ahead with plans to bring in changes to switching arrangements to let customers swap supplier by the end of the next working day.
On the same day (12 February) The regulator also announced the launch of a collective switching trial in the coming weeks, involving 50,000 disengaged customers from an unnamed “large supplier”.
According to recent figures by the regulator, overall domestic switching rates are at a record high. Last year 18 per cent switched supplier, the highest since 2009.
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