46% of all energy switches in September was from Large to Medium/small energy suppliers

Highly Competitive market

The data released by Energy UK showed that 488,780 customers moved to a new energy supplier in September.

“It’s positive to see around half a million customers are still switching every month, especially as we head into the colder months of the year when we use more energy. Now is the best time for consumers to get in touch with their supplier to check they’re on the best tariff or shop around as there always savings to be made.

‘I’d also encourage consumers to check if they’re eligible for a Green Homes Grant, launched by the Government last month, as energy efficiency measures remain the best way to save money on bills in the long term while helping the environment,” said Emma Pinchbeck, Energy UK’s chief executive.

The energy supply market is a highly competitive market and now consumers have never had more choice when it comes to the company who provides their energy.

Smaller energy suppliers continue to take customers off the larger players due to their ability to offer cheaper energy tariffs and provide more flexibility.

With cheap tariffs topping the charts for the reasons why people switch energy supplier’s competition has surged and driven down prices. Increased competition has meant that consumers have never had it so good in terms of choice. Improved technology and processes now mean that a person can switch their energy supplier incredibly quickly and easily. This poses a great challenge for both new market entrants and well-established energy suppliers and it all comes down to who adds the most value and how they do it.

Also read: Number of Smart Meters installed in 2020 surpasses 1 million mark and half a million people switched energy supplier in August

Slowdown month on month

The total number of switches in September was down 19% on the previous year and so far in 2020 over 4.4 million consumers have switched their energy supplier. This figure is down just 7% on the same period as last year. 

A possible cause for the reduction in switching is likely a result of the uncertainty created by the Covid-19 pandemic and we could see switching slow further after Ofgem announced that the current energy price cap will remain in place until the end of 2021. 

Total switches 

In September 2020, of all switches:

46% were from larger to small and mid-tier suppliers

11% were from small and mid-tier to larger suppliers

20% were between larger suppliers

23% were between small and mid-tier suppliers

In September, the net gain by small and mid-tier suppliers was 170,883 or 35% of all switches.

Further Reading

Brexit -Deal or no deal, what will the implications be for the UK Energy Sector?

Covid-19: Energy demand and prices rebounded in the third quarter

Energy Price Cap Extended to the end of 2021 to support struggling consumers

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