People ready to make the switch

Latest price hikes forcing consumers to shop around for deals

Switching of energy suppliers has surged to a six-year high as householders increasingly shop around for better deals on gas and electricity.

Customers swapped their energy providers 7.7 million times last year, according to the regulator Ofgem, a rise of 1.7 million, almost 30%, on 2015.

It comes as consumers face a spate of price rises in recent months, hitting the pockets of many who are already struggling.

Npower, EDF and Scottish Power are among those to have ramped up bills, with many blaming rising wholesale costs.

On Thursday Co-operative Energy announced it would increase the cost of its standard variable tariff by an average of 5%, a change that will affect around 96,000 customers when it comes in from April 1.

Earlier this month Ofgem set a temporary pre-payment price cap to protect more than four million households least able to benefit from competition following a two-year investigation of the energy market by the Competition and Markets Authority.

Ofgem advised consumers they can make substantial savings by shopping around for energy deals, warning that standard variable tariffs are typically more expensive than fixed deals.

Ofgem’s chief executive Dermot Nolan said: “This welcome increase in switching should serve as a warning to supply companies.

“If they fail to keep prices under control or do not provide a good service, they risk being punished as customers vote with their feet.”

Lawrence Slade, chief executive of the industry’s trade association, Energy UK, added: “With ever increasing numbers of consumers switching, it’s clear competition is working for more and more households. The industry is committed to ensuring the market works for everyone and is taking action to engage with loyal customers.”