Gas switching figures up 58 per cent in Q3

The volume of gas customers switching suppliers increased by more than a half in the third quarter of last year, according to government figures.

The quarterly energy supply transfer statistics, which were published on the Department for Business, Energy and Industrial Strategy (BEIS) website in the run-up to Christmas, shows there were an estimated 1.1 million transfer switches of gas accounts in the three months ending September 2017.

This represented a 58 per cent increase on the figure of 702,000 recorded in the same quarter of 2016.

The bulletin also shows a 33 per cent uptick in customers switching electricity suppliers over the same period.

According to the BEIS figures, an estimated 1,284,000 electricity customers switched suppliers in the third quarter of 2017, compared to 963,000 recorded in the three months ending September 2016.

The figure of 1.1 million gas transfers was the highest quarterly figure recorded since the third quarter of 2008.

The switching level for electricity customers in the three months ending September 2017 was the highest level recorded for the third quarter of the year since 2009. It was also the second highest switching figure for any quarter since 2013.

The figures show that 4.6 per cent and 4.8 per cent of all electricity and gas customers respectively switched in the third quarter of 2017.

However, while welcoming the increase in switching, comparison websites told Utility Week that overall levels were still too low.

Peter Earl, head of energy at comparethemarket.com, said: “Although it is encouraging to see a greater level of engagement from households in 2017, the proportion of households switching overall remain low.

“If customers are rolled onto uncompetitive standard tariffs when their fixed one comes to an end, they are likely to see a significant increase in costs – which is why there has been such support for the scrapping of standard tariffs, which were often the poorest value, over the course of 2017.”

He said the company’s customers had saved an average of £304 when switching dual fuel suppliers in 2017.

Claire Osborne, energy expert at uSwitch.com said: “2017 saw great strides being made in terms of energy switching, with huge year on year increases for each quarter. As more and more households understand the benefits of switching and saving, it’s no surprise that we are now hitting these peaks.

“But we shouldn’t be complacent – 60 per cent of energy customers in this country are still languishing on expensive standard variable tariffs, missing out on savings of up to £490 for just a few minutes work.

“It’s great to see the message getting through that customers can vote with their feet in order to get a better deal, but there is still more to be done to engage and educate those consumers who are paying more than they need to for the same gas and electricity.”