29% Decrease in Switching during April despite Lockdown

Many in the industry had been expecting an increase in switching due to most people being stuck at home due to the Coronavirus pandemic, however, it seems as though consumers have had more pressing matters to attend too during the lockdown.

“Many people continue to face unprecedented challenges and an increase in the amount of time people are spending at home has seen the average household pay £32 per month more for their energy than before lockdown,” said Peter Earl from comparethemarket.com,

Concerns over businesses, incomes, health, and family matters are all likely to have taken precedence. 

“It is certainly not surprising to see that switching energy supplier is not a top priority for most people while they are getting to grips with lockdown life. However, as many of us might be looking at ways to save on our energy bills, as well as checking you are on the right deal for you, it is also important to consider energy efficiency measures, especially if you are working from home and might have extra time on your hands,” said Audrey Gallacher, Energy UK’s Interim Chief Executive.

The dip in April’s figures brings the total number of switches for 2020 to just over two million - 2% lower when compared to the same period last year.

The fact that 35% of all the switches recorded during the last month were from larger to mid-tier suppliers suggests that the challenger brands are continuing to make headway into the market. 

Challenger suppliers have been able to take greater advantage of energy prices that are at their lowest level in two years. The wholesale price for electricity is currently at its lowest level since the summer of 2018 which is likely to result in more energy suppliers dropping prices.

Energy prices in April were down a whopping 44% on last year due to a dramatic decline in demand for electricity because of the lockdown. 

Unlike the big suppliers who have more costly operational costs and are often bound by shareholders, smaller energy suppliers have more flexibility to entice new consumers with cheaper tariffs. 

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.

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