More than 30 per cent of consumers who switched energy supplier in 2017 did so away from the big six, in favour of small or medium suppliers, new Ofgem figures have revealed.
The regulator released figures today (28 February) that showed the big six suppliers now have a record low market share.
Last year, 5.1 million electricity consumers and 4.1 million gas consumers switched supplier – the highest number for almost a decade, Ofgem said.
More than 30 per cent of those switched away from one of the six largest suppliers – British Gas, EDF, Npower, Eon, Scottish Power and SSE – to rival smaller companies. Ofgem also said it was notable that many switched supplier for the first time in 2017.
As of December 2017, the figures show smaller and medium sized suppliers were delivering electricity to 21 per cent of consumers and gas to 22 per cent. Ofgem compared this to 2013, when they held a collective market share of just 4.7 per cent for electricity and 5 per cent for gas.
Dermot Nolan, chief executive of Ofgem, said: “The message is clear: suppliers need look at what they are offering to their customers or risk losing them.”
He added there are still too many consumers who are paying too much for their energy, “which is why we are introducing price protection whilst we reform the market, to make competition work for all consumers.”
But Kevin Pratt, consumer affairs expert at price comparison website MoneySuperMarket, said: “The noise about the incoming price cap can blind people but it shouldn’t – quite simply the quickest and easiest way to save money on your energy bills, especially right now when it’s still freezing, is to go online and switch.”
Lawrence Slade, chief executive of Energy UK, described the results as “further evidence of a highly competitive retail energy market.”
He then went on to encourage more consumers to follow the switching trend: “Switching is simple, speedy and safe, and the easiest way to save money on your energy bill. Our advice to consumers is simply pick up the phone to your existing supplier or go online to check you’re on the best tariff for you – and if not, switch.”