‘Promising signs’ in February switching figures despite year-on-year decrease

There are several promising signs in the latest electricity switching figures, despite a year-on-year decrease, according to Electralink’s latest report.

Releasing its statistics for February 2021 today (17 March) the company’s Energy Market Data Hub (EMDH) reported 459,000 changes of supplier completed – more than 10 per cent less than February last year.

This, it said, is the lowest number of switches in a single month since last May but it added that switching typically picks up speed in spring as customers try to avoid being moved onto default tariffs.

Electralink said the news is slightly more promising for changes of supplier started, with the month recording 616,000 – just under three per cent less than February last year. This is however still seven per cent higher than February 2019 which preceded a record peak of switches that spring.

Additionally while last February saw fewer changes of supplier started than January, this year there were more recorded switches started than January which Electralink said is another positive sign.

Analysts have highlighted that switching activity appears to have flatlined over the past two years due to several months of notable highs and lows and the interruption of the pandemic.

The six-month rolling average for switches completed has declined to levels similar to early 2019, and the same average for switches started is at mid-2019 levels.

In terms of switching types, changes of supplier between large suppliers hit their highest level since March last year.

This is the only type that increased compared to February 2020, with all other switch types having decreased.

Switches from large suppliers to others (small and medium) are the lowest they have been since mid-2019.

• Large to large switches reached 253,000 – four per cent more than February 2020 and 55 per cent of February 2021’s total switches completed;
• Large to other reached 91,000 – 26 per cent less than February 2020 and 20 per cent of February 2021’s total;
• Other to large switches landed at 70,000 – 22 per cent less than February 2020 and 15 per cent of February 2021’s total;
• And other to other hit 44,000 – 19 per cent less than February 2020 and 10 per cent of February 2021’s total switches completed.

Electralink added that it expects to see an increase in switching activity in the coming months due to the price cap increase which will come into effect on 1 April.