Switching increases by 50 per cent in February

February saw a 50 per cent rise in the number of households switching energy provider, compared with January.

The latest government data has revealed the number of switches in February shot up to 317,000, well above the monthly average for 2014.

The dramatic increase follows a 30 per cent fall in switching in January, and correlates with price cuts from all the major energy suppliers in the second half of the month.

Eon was the first of the big six to cut its standard gas tariff by 3.5 per cent on 13 January, followed by British Gas (5 per cent), Scottish Power (4.8 per cent), Npower (5.1 per cent), SSE (4.1 per cent) and EDF (1.3 per cent) over the rest of the month.

Chief executive of Energy UK Lawrence Slade said it is “great to see customers are taking advantage of falling prices”. However, he warned the energy industry not to become “complacent”.

He said: “We want more customers to engage with the market and find the best deal for them. There is plenty of choice on offer, so, if a customer thinks they might be able to save some money they should call their supplier or log on to a comparison site see if they can save by switching.”

Energy secretary Ed Davey claimed the spike is down to the government’s reforms which “give people the power to switch”.

He said: “We’ve created greater competition in the energy market and halved the time it takes to switch supplier – making it easier than ever for people to shop around, switch and slash their bills by around £200 and in many cases more.”

The data also shows 25 per cent of all switches in February were to independent suppliers.

Speaking to Utility Week earlier this month, Davey said the rise of collective switching, which has helped new entrants grow, would have a “big and direct” impact on the UK’s energy customer base because the shift in customers happens “in one go”.