Switches between electricity suppliers hit an “unusual low” last month, the latest figures from Electralink have revealed.
A total of 418,000 customers changed supplier in May which is four per cent less than the same period last year and the lowest monthly switches completed outside of the annual January dip since July 2017.
Changes of supplier (CoS) started in May 2021 were similarly low, with the month ending on 508,000. This is one per cent up year-on-year, with last May being in the middle of the first lockdown.
Electralink added that so far in 2021, more than 2.5 million switches have been completed.
In terms of switching types, the only category that increased compared to May last year was large supplier to large supplier switches. All other types remained the same or decreased.
- Large to large reached 199,000 – four per cent more than May 2020 and 48 per cent of May 2021’s total switches completed
- Large to other was 122,000 – seven per cent less than May 2020 and 29 per cent of May 2021’s total switches completed
- Other to large CoS landed at 57,000 – similar to May 2020 and 13 per cent of May 2021’s total switches completed
- Other to other hit 41,000 – 25 per cent less than May 2020 and 10 per cent of May 2021’s total switches completed
The company added that over the last three years, the large legacy brands have been losing customers to other suppliers at a rate of 1.5 million (or five per cent of the market) a year.
While large legacy suppliers still enjoyed a dominant market share (55 per cent) at the start of April 2021 Electralink said this could decrease to under 50 per cent next year. This does not however account for acquisitions made through supplier of last resort events or trade sales.
Electralink’s energy market insight experts further predict that 450,000 switches will be completed in June, similar to June 2019. However, it added, recent news about price increases will potentially trigger a larger shift in CoS in the latter half of the month.