Switching sees ‘slow and uncertain rise’ in 2023

Electricity switching saw a “slow and uncertain rise” in 2023 following two years of supressed market activity, Energy UK’s latest figures reveal.

The industry trade body said that in December 2023 190,653 consumers switched to a new supplier, an increase of 76% on the same period in 2022.

Yet this is only three-quarters the level of the October 2023 peak of almost 261,000 which was driven, in part, by a season spike in business customers switching.

“After almost two years of suppressed switching figures, we are witnessing a slow and uncertain rise in customers shopping around,” Energy UK said.

In total the trade body recorded almost 2.3 million switches last year, a more than 73% increase on the year before (1.3 million) but still a 55% decrease on 2021 (5 million).

In December 2023 of all switches:

• 19% were from larger to small and mid-tier suppliers
• 17% were from small and mid-tier to larger suppliers
• 60% were between larger suppliers
• 4% were between small and mid-tier suppliers

Elsewhere Electralink has also published its latest electricity switching figures which show similar trends.

In total it recorded 2.32 million switches last year – 78% more than 2022’s 1.3 million switches.

There were 201,000 switches in December which is 86% higher than the same month in the previous year but a 16% drop from November 2023.

The company’s analysts suggest a combination of Christmas and other factors account for the monthly decrease but that this matches trends in previous years.

“The lower energy price cap for standard variable tariffs and overall better wholesale market prices means energy bills were lower at the end of 2023 than earlier in the year. However, fixed tariff options on the market remain relatively limited compared to the era of peak switching activity from 2019 to 2020,” it added.

Of all switches:

• Large to large reached 128,000 – the same as November 2023 and 63% of December 2023’s total
• Large to other switches totalled 38,000 – 9% less than November 2023 and 19% of December’s total
• Other to large reached 26,000 – 53% less than November 2023 and 13% of the total
• Other to other switches landed at 10,000 – 33% less than November 2023 and 5% of December 2023’s total

Other notable insights from Electralink’s data include the fact that while voluntary switching activity almost doubled year-on-year, it is only up to a similar level as in 2014.

Meanwhile involuntary switches, where a change of supplier occurs because of the Supplier of Last Resort process, system migrations and trade sales between suppliers is back up to 2020 levels.

Between the two, there were 8.28 million change of supplier events in 2023 which is 43% more than the 5.78 million Electralink recorded in 2022.