Switching hits 3-year low in July

The number of customers who switched energy supplier hit a three-year low last month, the latest figures from Electralink have revealed.

In total, 453,000 changes of supplier (CoS) were completed, which is almost 16 per cent less than the same period last year and the lowest July since 2018.

The number of CoS started in July were also the lowest monthly total this year at 512,000. This marks a 24 per cent decrease compared to July 2020.

Overall, switching between large suppliers and to large suppliers from other suppliers increased compared to July last year while switches between other suppliers and to other suppliers from large suppliers decreased.

• Large to large CoS reached 204,000 – three per cent more than July 2020 and 45 per cent of July 2021’s total switches completed.
• Large to other CoS was 118,000 – 40 per cent less than July 2020 and 26 per cent of July 2021’s total switches completed.
• Other to large landed at 72,000 – 12 per cent more than July 2020 and 16 per cent of July 2021’s total switches completed.
• Other to other hit 59,000 – 25 per cent less than July 2020 and 13 per cent of July 2021’s total switches completed.

According to Electralink’s Energy Market Insights analysts August is also looking to be a slow month for switching. Current averages suggest as few as 376,000 switches will be completed this month which would be the lowest total for August since 2017.

At most, the analysts predict 410,000 supplier changes completed in August, which would still the lowest monthly figure since July 2017.

Recently Ofgem announced the largest increase to the price cap in its history and Electralink believes this could encourage customers to switch in September and October, the month the cap takes effect.

So far this year 3.45 million switches have been made.