‘Vigorous competition’ prompts more energy consumers to switch
The number of consumers shopping around for cheaper energy deals in 2007 reached a five-year high, according to new data released by regulator Ofgem.
A total of 5.1 million households switched suppliers last year, an increase of 300,000 on the corresponding figures for 2006.
Ofgem said that healthy competition within the market, which was opened in 1999, meant customers could save an average of £92 a year by switching.
Chief executive Alistair Buchanan said: “The number of customers switching supplier is increasing and five million account switches alone in 2007 shows that suppliers who don’t offer competitive prices and good service will lose customers.”
However, independent watchdog Energywatch emphasised the difficulty of switching for many people.
“For millions more consumers switching to a cheaper tariff is either fraught with difficulty or just plain impossible,” Adam Scorer, director of campaigns, said.
The unemployed, low income families and pensioners are most likely to stick with their existing supplier regardless of price. This has prompted Ofgem to launch Energy Best Deal with Citizens Advice, a new initiative designed to raise awareness of the deals on offer, and start an investigation into the effectiveness of the market.
The number of people switching is expected to rise further in 2008 as the steep annual increases imposed by all major energy suppliers filter through.
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