All companies signed up to the Energy Switch Guarantee (ESG) have hit their targets for the first time since the scheme was updated last year.
The ESG is a series of commitments by retailers to hit certain standards and targets around the switching process, such as ensuring switches are completed within five working days or less.
There are currently seven suppliers signed up to the guarantee – EDF, Eon, Octopus, Outfox the Market, Ovo, Shell Energy and So Energy.
To be in accordance with the ESG, suppliers must hit four key performance indicators (KPIs) which were updated at the start of 2022. They include:
- 98% of switches completed in five working days or less
- 90% of final bills issued within six weeks or less
- 90% of credit refunds issued within 10 working days or less after the final bill
- 98% of customer-driven switches to a new tariff with the customer’s current supplier are completed within five working days
The results for the second quarter of this year – and just published – show that all suppliers are now hitting or exceeding the ESG’s KPIs. (See table below.)
It is the first time that all suppliers have met their KPIs since they were updated in 2022.
Matt Cole, independent chair of ESG, said: “The vision and passion behind the Energy Switch Guarantee is that standards around switching and engagement across the energy market should be incrementally ratchetted up to deliver an enhanced customer experience. The ESG also holds supplier members to account, ensuring that promises are met and standards are delivered.
“The most recent update from the ESG highlights that supplier members have met and exceeded all commitments over the last quarter, with some suppliers delivering a marked improvement compared to previous months which in turn will deliver better customer outcomes.”
An Energy UK spokesperson added: “It takes a lot of work for signatories to comply with the Energy Switch Guarantee, and Energy UK is pleased to see that all of our signatories were fully compliant with the ESG in this quarter. Energy UK encourages signatories to maintain these high standards so that even more customers can gain confidence in switching supplier and see that it is simple, speedy and safe.”
During the first quarter of this year, three companies (Eon, Octopus and Outfox the Market) were pulled up for their performance.
Both Eon and Octopus failed to hit the KPI relating to speed of switching, while Outfox the Market failed to submit data in time. Eon was consequently downgraded in the Citizens Advice rankings for repeatedly failing to hit targets related to switching customers.
Having now turned things around, an Eon spokesperson said: “We’re always looking for ways to improve the services we offer for our existing customers and for customers joining us and are pleased to have continually improved the switching process for new customers over recent months.
“The Energy Switch Guarantee offers peace of mind to customers wanting to join a new supplier and it’s vital we make this process as simple as we can, so customers have the freedom to find the best supplier and tariff for them.”
Energy UK’s electricity switching figures for August show that the number of customers switching energy supplier is now at the highest level since October 2021.
The figures show that 213,020 customers switched to a new supplier last month.
It is the first time the numbers have passed above 200,000 since before the crisis and is the highest recorded number of switches for 21 months.
It is also an 83% increase compared to the same period last year.
Despite the uptick in people switching supplier, Energy UK stated that “increases remain modest”.
Prior to the energy crisis, the number of customers switching supplier each month often exceeded 400,000. In June, Energy UK said that “there is no sign the numbers will return to historic levels any time soon”.
However, with the new price cap coming into force this weekend (1 October), increased competition is predicted to lead to greater number of switches.
From 1 October, the headline price cap level for a typical household will be £1,834, slightly below the £1,923 level announced on 25 August. The reduction reflects a change in the way Typical Domestic Consumption Values (TDCV) are calculated, with he updated values coming into effect from 1 October.