A total of 333,653 people switched supplier last month, a record figure recorded for that month and a 22 per cent increase from July 2015.
This brings the total number of electricity switches to more than 2.5 million so far in 2016. The figures from Energy UK also show that 23 per cent of switches in July were to small and mid-tier suppliers.
Energy UK chief executive Lawrence Slade said: “It is fantastic to see customers shopping around over the summer months when energy bills are the last thing on the minds of most people.
“More than 40 suppliers are offering some great deals especially for those who haven’t switched for several years and could potentially save hundreds of pounds.”
Business and energy secretary Greg Clark commented on the figures: “Government action means the market is more competitive than ever, and these figures show that even more bill-payers are reaping the benefits by switching and saving up to £300.
“We need to keep working to continue to drive down energy bills for hard working families and businesses by continuing to reform the energy market so it really works for consumers.”