Extra Energy’s managing director of operations Ben Jones told Utility Week that a market where consumers have to continually switch suppliers to get a good deal is not in their best interests long term.
“It’s all too easy to say let’s encourage switching because that creates competition and competition drives prices down, and that’s right, but who wants to live in a world where you’re having to switch prices on everything every five minutes?”
Jones said Extra Energy is in favour of suppliers informing consumers on bills of the cheapest tariff on the market, even if that tariff is with a competitor to help build enduring trust and loyalty.
“We would really encourage the rest of the market to publish what the best deal is at any one time.”
Jones said a main focus for Extra Energy is ensuring its customers do not drift onto expensive variable tariffs when their fixed rate comes to an end.
It undercut First Utility’s newly launched cheapest fixed dual fuel tariff by £1.49 last week.
Jones said: “If consumers can build trust in us because we are offering really competitive tariffs and we are also telling consumers when we are not offering a competitive tariff, then that builds a loyalty that doesn’t exist in the market at the moment.
“I think we need to put a time limit on how long we are going to be pushing this ‘let’s all switch philosophy’ and at that point consumers need to understand what they get from us both in price and service offering.
“We need to encourage a lot more switching but ultimately this is about building trust and loyalty between supplier and consumer, and once we can get that relationship to the right place then that’s the panacea. Then energy companies can invest properly in their existing customers.”