Switching between large suppliers soars as consumers lose faith in smaller firms

Switching between large energy suppliers has reached the highest level since switching virtually disappeared in late 2021.

There were 135,000 large-to-large changes of supplier in March 2024, 3,000 more than the previous recent high recorded in October 2023.

Electralink suggested that its figures show a “potential fall in consumer trust in smaller brands after dozens of supplier exits in 2021”.

Overall, 224,000 switches were recorded in March, representing a 28% year-on-year increase and a 4% rise since February.

In terms of all switch types:

• Large to large switches reached 135,000 – 6% more than February 2024 and 60% of March 2024’s total switches
• Large to other switches totalled 49,000 – the same as February 2024 and 22% of March 2024’s total switches
• Other to large switches reached 29,000 – 9% more than February 2024 and 13% of March 2024’s total switches
• Other to other switches landed at 11,000 – 5% less than February 2024 and 5% of March 2024’s total switches

Electralink added that switching activity tends to increase in March and April every year as fixed tariffs end and Ofgem’s price caps change.

There have been 647,000 switches so far this year.

Last year, almost 2.3 million switches were recorded, a more than 73% increase on the year before (1.3 million) but still a 55% decrease on 2021 (5 million).

Earlier this year, Ofgem updated the requirements of suppliers’ Guaranteed Standards of Performance (GSoP), to ensure quicker switching.

Specifically, Ofgem has reduced the time suppliers have to compensate customers for a slow switching experience, from 21 working days to five working days. The change came in to effect on 1 April this year.