Blog Post

Number of consumers switching to Challenger Energy Suppliers increased strongly in June according to latest Electricity switching data

Richard Simmonds • July 13, 2020

New data has shown that the number of consumers switching their energy supplier recovered in June to rebound from the three-year low figure reported in May. 

Rebound as Covid-19 Lockdown eased

The increase in consumers switching their energy supplier comes as the UK government continues to ease lockdown measures. The measures were imposed in response to the Coronavirus Pandemic that has, according to the latest data, claimed 44,819 lives. 

As a result of the lockdown, it was initially expected that there would be a sharp rise in the number of people looking to switch their energy supplier due to many people being told to work from home or being furloughed by their employers. 

Instead, consumers seem to have been distracted by other factors and the number of switches to different energy suppliers saw a decline over the height of the lockdown period.

Now, as more people return to work, discover that they no longer have jobs to return too and/or try to get back to some semblance of normality, the number of switches recorded a strong resurgence in June.

Year-on-year and Month-on-month increase

The electricity switching data released by Electralink showed that 470,000 switches were carried out in June, an 8% increase on May’s three-year low figure and saw a 6% increase on a year-on-year basis.

 

The data suggests that the energy sector saw something of a switching recovery in June and looks set to see a strong July with 631,000 switches being started in June, a 14% rise on the previous year and a 24% increase on May 2020s figures.

 

The exact cause for the increase in recorded switches is unknown but it could be due to energy suppliers managing a backlog of switching requests that built up during the lockdown. With more staff back at their desks, some suppliers will be hastily trying to catch up with any outstanding requests. 


Challenger Energy Suppliers take the biggest slice

There’s good news for smaller challenger energy suppliers as switches from the big six to smaller brands comprised the biggest proportion of moves.

 

149,000 consumers jumped ship from a Big Six supplier to smaller suppliers, making up 40% of June’s total completed switches. The figure was also 19% higher on a year-on-year basis.

 

Challenger suppliers have several advantages over the Big Six in terms of flexibility and ability to deliver cheaper tariffs and good customer service.

 

If you’d like to start and manage an energy supply company, get in touch with Dyball Associates today.

Further Reading

Half of Energy Suppliers have failed to hit Smart Meter Installation Targets


Ofgem to introduce new standards for smaller energy suppliers this winter


How does the UK Energy Market work Part 1 – Energy Prices and entering the energy market


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.

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