Supplier switches reach 5.5 mil in UK in Jan-Sep

This includes 2.3 million domestic gas switches, and 3.1 million domestic electricity switches, as customers changed supplier.

In September, around 15% of electricity and gas customers switched suppliers, as switching rates (switches over a 12 month period) reached their highest level since February 2012.

“There are big savings to be made by switching, with the cheapest deal currently on the market (£822 per year) around £250 less than the average large supplier standard variable tariff (£1,066 per year)” Ofgem said.
“However, while those who are active in the market are getting better deals, our data shows that 66% of all households remain on expensive standard variable tariffs” it added.

Therefore, Ofgem is taking forward the Competition and Markets Authority’s (CMA) reforms as part of a programme to make the market more competitive, fairer and smarter. 
“Ofgem wants suppliers to reach out to people who have not switched and offer them a better deal, particularly disengaged loyal customers who are still on expensive standard variable tariffs, ahead of the delivery of the CMA reforms” it explained.As part of the CMA reforms, Ofgem is also introducing a price cap which will save millions of households on prepayment meters an estimated £75 a year from April 2017.

“Suppliers must do more to reach out to people who have not switched and offer them better deals so that competition drives down prices for everyone, including loyal customers” commented Rachel Fletcher, Ofgem senior partner, Consumers and Competition. “Otherwise public trust will not be restored in the energy market” she added.

In the UK, there are currently around 28 million electricity and 22 million gas customers, Ofgem reported, adding that many of these are dual fuel, with on average 70% of electricity customers, and 80% of gas customers having dual fuel accounts.