Levels of customer engagement with the energy market “reduced slightly” between October 2018 and January this year, new figures have revealed.
According to Uswitch’s quarterly retail energy market tracker, there is the possibility of a “widening gap” emerging between engaged customers who choose their own tariff and slightly less engaged households who are on standard variable tariffs (SVTs) or do not know what tariff they are on.
Furthermore, a small decline was detected in consumers’ having positive experiences of dealing with suppliers – potentially because of a number of suppliers going bust last year.
Richard Neudegg, head of regulation at Uswitch.com, said: “Confidence in the process and benefits of switching in January 2019 was also slightly lower than in October 2018 – which may reflect the impact of price rises in 2018 or anticipation that the energy price cap would negate the need to switch.”
Uswitch says its next energy market tracker will continue to monitor trends in the industry, including whether consumer attitudes or intent have been influenced by the increase to the energy price cap.
The cap, which has been raised by £117 by Ofgem to £1,254, will come in effect on Monday (1 April).
Rising wholesale costs were largely to blame for the increase according to the regulator.
All six of the UK’s large energy suppliers will raise their SVTs in line with the new cap, which will be revised again later this year.
Challenger suppliers Bulb and Igloo however have recently announced they are lowering their costs for customers.