Energy Supplier Switching falls to a three year low despite rising Energy Price Cap

The Energy supplier switching figures for July are in and it makes disappointing reading for smaller suppliers as the number of consumers switching fell to a three year low.

Slowdown in number of consumers switching their supplier

Future Forecast

Electralink analysts said that July’s number of switches met their target predictions of 450,000-460,000 switches. So far this year there has been 3.45 million completed switches recorded.

A rebound in switches in August is not expected with the number said to be down again on the preceding year. This decline comes even after Ofgem announced that it was increasing the default tariff price cap in October to a record high of £1277 per year.

Electralink’s analysts said that they expect 410,000 switches this month and rises in September and October ahead the price cap rise.

Also read: Ofgem confirms a record high increase to the Energy Price Cap as 26 Energy Suppliers sign up to fresh commitments to help struggling consumers

Large drop in switches to smaller energy suppliers

July saw a second consecutive decline in the number of consumer switching from larger energy suppliers to smaller ones. Switches between large suppliers and from smaller suppliers to large suppliers both increased on a year on year basis.

The number and type of switches were:

• Large to Large suppliers reached 204,000 – 3% more than July 2020 and 45% of July 2021’s total switches completed,
• Large to Other suppliers reached 118,000 – 40% less than July 2020 and 26% of July 2021’s total switches completed,
• Other to Large suppliers landed at 72,000 – 12 more than July 2020 and 16% of July 2021’s total switches completed, and
• Other to Other suppliers hit 59,000 – 25% less than July 2020 and 13% of July 2021’s total switches completed.

ElectraLink estimates that so far this year, nearly 3.4 million changes of supplier have occurred.

Looking to enter the UK energy market? Dyball Associates team of energy market consultants can guide you through the steps to get qualified and attain your gas or electricity licence. 

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help. 

Further Reading

Competition and Markets Authority (CMA) provisionally sides with Ofgem over its plans to reduce Energy Firms Returns

Energy Suppliers must embrace new technology and improve communications to serve the next generation of consumers says new report

Hub Energy ceases Trading

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.