The number of customers switching to a different electricity supplier fell sharply in June—down nearly 10% in a month and 9% from the previous June.
That’s according to monthly switching figures compiled by Energy UK.
While the trade body found that more than 440,000 households moved to a new power supplier during the month, rates of switching had slipped significantly since earlier in the year.
A record-breaking 660,000 households swapped electricity provider in April.
But even with a slow June, the electricity market is still more active than ever, with 3 million households signing up with a new supplier since the beginning of the year. Rates of switching for the year are still up 10% on last year’s figures, when a record 5.8 million, or one in five, domestic electricity consumers moved supplier.
Lawrence Slade, chief executive of Energy UK, said: “Whilst our figures show there has been a significant decrease last month, switching remains up on last year, and our hope is that consumers will continue to shop around for a better deal. And with around 60 suppliers on the market, consumers have now more choice and services offered to them than ever before.
“I’d urge everyone to get in touch with their supplier, or have a look online, to check they’re on the best deal for them.”
35% of the switches in June were from larger to small and mid-tier suppliers, suggesting that market share of the Big Six, which fell to a low of 75% in figures released by Ofgem last October, will dip even further.
However, much of the switching documented by Energy UK, remains in a particularly active portion of the market. More than three in five (61%) of households have never switched electricity supplier or switched only once, according to Ofgem data. That’s despite the up to £320 a year customers can save by moving onto a new tariff.
Research from Energy Switch Guarantee published last month found that around half (48%) of customers have switched energy supplier in the last four years. That’s higher than the portion of customers who have switched home insurance (35%), broadband (31%), telephone provider (24%) and bank (14%).
But that also means millions of households haven’t switched energy provider recently. Among those who haven’t switched, around a third cited satisfaction with their current supplier’s service (39%) or with the price of their tariff (34%) for their loyalty.
However, among customers who had switched in the last four years, more than eight in 10 (83%) were satisfied with the process. The Energy Switch Guarantee, an initiative run by Energy UK, pledges the switching process for consumes will be simple, speedy, and safe. It’s been adopted by suppliers covering around 85% of the domestic retail energy market.
