A record number of customers switched energy supplier last month

A staggering 668,371 customers switched energy supplier in April, more than have ever been recorded to have switched in a single month. The increase in switching activity is thought to have been stimulated by the increase in the Ofgem price cap, which raised bills on average by £117.

The number of switches during April is up 34% from April 2018. According to Energy UK , this brings the total number of switches this year to more than two million. More precisely, they say that the number of households switching supplier is pegged at 2,119,516, an increase of 18% over the same period last year.

Chief Executive of Energy UK, Lawrence Slade, commented that,

“It is very positive to see that record numbers of customers continue to move to a new supplier in search of a better deal, and we must remember Ofgem’s figures also show many more each month move to a better deal with their current supplier… at a time when we are facing a climate challenge on a global scale, it is important for all of us to look at our energy use and ensure our homes are energy efficient. This is the best way to keep your energy bill down while also reducing your carbon footprint so you can help save money and the planet.”

The industry body also said that consumer confidence in the switching process is high right now. Their research for the Energy Switch Guarantee shows that eight out of 10 consumers are satisfied with the switching process.

During April, large suppliers lost customers to small and medium energy suppliers. In fact, 47% of all switches were away from the big six. This was thought to be stimulated by Ofgem’s raising of the price cap , following which all of the big six put their prices up by around 10%.

However, 21% of switches were from large supplier to large supplier, showing there is still a large fan club who prefer to stick with the big names. 22% were switches from one small or medium supplier to another.

Already this year it has been revealed that almost a quarter of a million customers left British Gas, leading parent company Centrica to a profit warning. Npower have lost an estimated 103,000 customer in the first quarter of the year, and Scottish Power are down around 50,000 over the same period.

The figures published by Energy UK are for electricity switching only. The data is provided by Gemserv Ltd, and includes both domestic and non-domestic customers, but does not include those who were switched to a supplier of last resort.

According to Energy UK, almost 90% of the UK’s energy suppliers by market share are now signed up to the Energy Switch Guarantee. This guarantee has, so far, been a voluntary code of practice, designed to give consumers confidence that they will be switched quickly, safely and without hassle.

Suppliers who sign up will be awarded an additional three stars towards the Citizens Advice energy supplier rating. It’s also recognised by Ofgem, BEIS and the Ombudsman as a worthwhile endeavour for suppliers of all sizes.

Despite the service claiming a 90% sign up rate, many small suppliers are absent from the Guarantee signatories. All of the big six are signed up, along with some of the larger small suppliers, including Bulb, Octopus, Pure Planet and Shell Energy (previously First Utility).

It is hoped that the new Ofgem automatic compensation rules , which mimic many of the elements of the Energy Switch Guarantee, will encourage more independent energy suppliers to sign up to the scheme. IF a supplier is maintaining compliance with the compensation rules , then they’re almost there with compliance for the Energy Switch Guarantee too.