Five Million households deterred from switching Energy Supplier claims new report

Earlier in the year, it was reported that the number of customers switching had hit a new record high but as 2019 has progressed it seems that trend has slowed to a crawl. In April, 668,371 customers switched supplier, the biggest number ever recorded for a single month.

The rise then was a result of the increase in the Ofgem price cap, which raised bills by as much as £117.

The trend then saw customers switching to the more competitive smaller suppliers, but this new data shows that over the past three months the biggest suppliers have upped their game with the numbers switching to them outstripping moves to smaller firms.

“It is hardly surprising that the catalogue of supplier collapses in the past two years is harming people’s decisions when it comes to choosing an energy supplier. Engagement in switching is already low despite the considerable savings that can be made by changing supplier regularly, with the roll call of supplier failures further fuelling inertia.

Proposals outlined by the regulator to implement new financial checks and tests for existing energy providers should be fast-tracked to prevent the stain of supplier collapses on the industry becoming a permanent fixture. Consumer confidence is already damaged, but action is required now to reassure energy customers in 2020 and beyond that, the issue of supplier collapses is being treated with the seriousness it deserves.” Said Peter Earl, head of energy at Comparethemarket.com

Energy UK’s most recent electricity switching figures show that 626,284 customers moved to a new supplier in October – down 1.1% on the same month last year and up 9.2% on the same time last year - when a record 5.8 million customers switched supplier.

To help put customers at ease when it comes to switching, smaller suppliers can sign up to the Energy Switch Guarantee which is designed to offer assurance that consumers will be switched quickly, safely and hassle-free. All the Big suppliers are signed up, as well as the larger small suppliers.

Other benefits for energy suppliers that sign up to the guarantee include:

• The Guarantee provides a key forum for suppliers to work together to identify and resolve switching issues
• Membership of the Energy Switch Guarantee is recognised – with an extra 3 stars towards the customer guarantees element of the Citizens Advice energy supplier rating
• Ofgem, Citizens Advice, Ombudsman and BEIS are keen to see more energy providers who meet the switching guarantees high standards sign up.
• An improved switching process can reduce real or perceived switching costs and increase consumer engagement

Inaccurate billing most common complaint against Energy Suppliers

Over 5.3 million customers have switched Energy Supplier so far in 2019

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