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Switching showing ‘early signs of a recovery’

Switching in the energy retail sector is showing “early signs of a recovery”, with customers moving between large suppliers driving the increase.

Almost 150,000 (148,810) customers switched to a new supplier in February 2023, an increase from January (117,263) and up by 55% compared with the same period last year.

“Whilst switching remains well below pre-crisis levels, there are early signs of a recovery in people changing domestic electricity supplier, with a 38% growth in households switching month-on-month between January and February 2023,” Energy UK’s latest update said.

In February 2023, of all switches:

  • 19% were from larger to small and mid-tier suppliers
  • 16% were from small and mid-tier to larger suppliers
  • 62% were between larger suppliers
  • 4% were between small and mid-tier suppliers

Last month Energy UK reported that the number of customers switching electricity supplier increased year-on-year for the first time since May 2021.

Elsewhere in the sector, Electralink has also recorded a boost to household switching last month.

It found that 149,000 switches completed in February, up 56% year-on-year and 27% month-on-month.

“February’s figure is also the second highest monthly total since November 2021. The highest month since then is October 2022 with only a few hundred more completed CoS (changes of supplier) than February 2023,” the company said.

Of all switches in February 2023:

  • Large to large was 84,000 – 57%
  • Large to other totalled 27,000 – 18%
  • Other to large switches reached 28,000 – 19%
  • Other to other switches landed at 9,000 – 6%