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Ofgem has found that switching is up 28 per cent compared with the same period last year.
Between January and September 2016 Ofgem recorded 5.5 million switches, the highest figure since February 2012.
The data from the regulator includes 2.3 million domestic gas switches and 3.1 million domestic electricity switches. In September, around 15 per cent of electricity and gas customers switched suppliers.
The current cheapest deal on the market comes in at £822 per year, around £250 less than the average large supplier standard variable tariff (£1,066), according to the regulator.
Despite the increased switching levels, the data also shows that 66 per cent of households remain on standard variable tariffs.
Ofgem senior partner consumers and competition Rachel Fletcher said: “We welcome the fact that more consumers are switching to take advantage of the cheaper deals or better service on offer.
“But suppliers must do more to reach out to people who have not switched and offer them better deals so that competition drives down prices for everyone, including loyal customers. Otherwise public trust will not be restored in the energy market.”
Ofgem is consulting on remedies from the Competition and Markets Authority (CMA) which require suppliers to contact customers who have not switched and offer them a better deal, particularly disengaged customers who are still on expensive standard variable tariffs. It is also introducing a price cap for prepayment meter customers from April 2017.
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