Switching rates rose by almost by nearly a million in 2016 compared to the previous year, at 26 per cent increase, according to the latest Energy UK switching data. This represents a record high since the data started to be published in 2013.
Monthly switching figures were also up in 2016 with an average of 400,000 moves per month. In December, 449,921 consumers switched supplier, up by a third (33 per cent) compared to December 2015. Additionally, one in five of those switches were to a smaller supplier.
Energy UK chief executive, Lawrence Slade said: “It is fantastic that switching levels are continuing to soar with almost five million households changing supplier last year.
“Across the industry, energy companies are doing more to engage with all of their customers, making it easier for people to be on the right tariff whether that’s with their current supplier or by switching to one of the 40 plus suppliers active in the market.”
Th figures have been described as “very encouraging” by energy expert for MoneySuperMarket Stephen Murray.
He said that a variety of different factors including the relaxing of the four-tariff rule, new suppliers entering the market and collective switches with competitive tariffs have all “created an environment with more choice for consumers, especially those who may not have switched before.”
However, while welcoming the switching uptick, director for campaigns and communications at Which? Vickie Sheriff said: “there are still 20 million people who are stuck on some of the most expensive standard tariffs, paying over the odds for their energy.”
“We want to see a much more competitive market and action taken by the suppliers to move their customers off poor value deals.”