Price hikes see more people switching their energy supplier
● 30 per cent rise in number of people swapping energy providers
Customers swapped their energy providers 7.7 million times last year – a six-year high for householders seeking better deals on gas and electricity.
The news comes as consumers faced a spate of price rises recently. Npower, EDF and Scottish Power are among those increasing bills, with many blaming rising wholesale costs. Of those who switched, 47 per cent were to small or medium suppliers.
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 per cent, 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 per cent, 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.
Despite rising switching rates, around two thirds of customers still remain on standard variable tariffs.
Of those who did switch last year, 47 per cent were to small or medium suppliers as they continued to attract growing numbers of customers.
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.
“While today’s figures show good progress, the market is not as competitive as we would like. That is why we have put a temporary price cap in place.”