Large Energy Suppliers see the best month for energy switching in eight years as consumers seek stability

The crisis in the energy supply market led to more consumers switching from smaller suppliers to larger ones at the highest rate in eight years in September. 

Uncertainty for consumers sees them leave smaller suppliers

The data

Out of the 465,000 Changes of Supplier (CoS) completed in September 2021, three-quarters of the switches were from other suppliers to large suppliers and between large suppliers to large suppliers. The September data shows that:

• Large to Large switching reached 246,000 – 26% more than September 2020 and 53% of September 2021’s total switches completed,
• Large to Other switching reached 79,000 – 55% less than September 2020 and 17% of September 2021’s total switches completed,
• Other to Large switching at 100,000 – 46% more than September 2020 and 22% of September 2021’s total switches completed, and
• Other to Other switching hit 40,000 – 45% less than September 2020 and 9% of September 2021’s total switches completed.

Also read: How long does it take to switch energy supplier?

Switching down 7% year on year

Despite the increase in the number of consumers switching to larger suppliers the data also showed that the switching total was down 7% year-on-year suggesting that consumers were holding their positions even as the crisis engulfed the sector.

“However, the month’s switching total is 7% down on September last year, and the lowest September total since 2016. The majority of the switches completed in September were started in August when the price cap increase was announced and before the widely reported market disruption began, however, this did not result in a boost in switches being completed,” said an Electralink spokesperson.

Data for the remaining months of the year is likely to be tricky due to price comparison websites being forced to limit their energy price comparison services. Consumers have seen their options for cheaper tariffs vanish as energy suppliers were forced to hike prices in an attempt to ride out the ongoing crisis.

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Further Reading

The Department for Work and Pensions slammed for ‘damaging’ tariff switching message

Utility Warehouse pays £1.5 million to Ofgem for inadequate support of struggling customers

Customers of the six recently failed Energy companies assigned new suppliers

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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.