Switching falls to lowest level in a year

The number of customers switching energy supplier has dropped to its lowest level since June 2023.

In May, 182,598 total switches were recorded, according to Energy UK’s monthly switching statistics.

That represents a 22% month-on-month decrease and is the lowest number of monthly switches recorded since last June when 170,636 customers switched supplier.

The majority (59%) of switching occurred between large suppliers, however, the long-term trend of customers switching from large suppliers to their smaller competitors continues, albeit at a much lower rate than before the energy crisis.

For May, the net gain by small and mid-tier suppliers within domestic market was 12,291 or 7% of all domestic switches.

A high number of switches (235,272) in April had spurred hope that competition was returning to the energy market.

In particular, backers of the ban on acquisition only tariffs (BAT) used the figures to show “it is perfectly possible” to have a competitive energy retail market with the BAT in place.

Octopus – in particular – has been one of the retail sector’s most vocal critics of Ofgem’s minded to position to lift the BAT, which prevents suppliers offering cheaper deals exclusively to new customers. It is currently scheduled to run until 31 March 2025.

A recent poll commissioned by So Energy found that nine in 10 customers and 71% of MPs oppose the BAT removal, while a similar survey by Eon Next found 93% of UK consumers agree that energy companies must not restrict their best deals to new customers.

Despite a slowdown in switches in May, a recent survey found that almost half of British people say they are looking for cheaper energy deals to help them save money.

Research by Eon Next found that three-quarters (76%) say saving money is a top priority for them this year, with 72% stating they know how to save energy to reduce their bills.

Almost half (47%) of British people are looking for energy tariffs that help them save money, while a third (37%) seek clear information on tariff rates.

Movement between supplier groups in May 2024:

• 23% were from larger to small and mid-tier suppliers
• 13% were from small and mid-tier to larger suppliers
• 59% were between larger suppliers
• 5% were between small and mid-tier suppliers