Record switching gains for small and medium sized energy suppliers as the shift away from the former Big Six continues

It’s a great time to be a small and medium-sized energy supplier with the latest supplier switching data showing that a record number of consumers moved away from the larger market players.

Small and Medium Energy Suppliers make record gains

Impact of the Ofgem Price cap and improving standards

As expected, the energy price cap rise played a significant role in spurring customers to switch their supplier. With finances already under strain, thanks to the uncertainty created by the Covid-19 pandemic consumers sought out the cheapest energy deals.

The price cap increased by £96 taking the total to £1,138 from 1 April 2021.

With smaller energy suppliers offering cheaper tariffs that could save a customer hundreds of pounds on their energy bills it is little surprise that so many consumers have opted to move over to them.

Smaller suppliers have also seen a boon from increasing standards with their customer service and experience offerings. In the latest Simply Switch best energy supplier rankings it was small and medium-sized suppliers that came top in virtually every category.

Suppliers such as Outfox the market and Avro Energy came top of the best customer satisfaction charts whilst the likes of Npower, E.ON and EDF came top for the worst overall customer experience.

Energy software such as the offerings provided by Dyball Associates has helped over 20 small energy suppliers dramatically improve their customer experience offerings as well as improve the accuracy of their energy billing.

Also read: Dyball’s Energy Industry Software – What do we offer?

The data

Out of the 623,000 switches recorded, 209,000 were from large suppliers to small and medium ones.

Switches between large suppliers numbered 288,000, a 38% increase on the previous year and switches between smaller suppliers to larger suppliers numbered 66,000 a 14% decline on the previous year.

The number of switches begun in April was recorded as 564,000, an increase of 15% on a year on year basis.

Are you looking to join the energy supply market? Dyball Associates gives energy companies the option to enter the UK market by purchasing an off-the-shelf supply business or by using our energy market consultancy services to create a new one. We specialise in both gas and electricity market entry and draw on over 25 years of experience to deliver the optimum route to market.

Further Reading

Ofgem confirms £1.5 million fine for National Grid ESO for its failure to provide accurate and unbiased electricity demand forecasts

E.ON reports positive first-quarter earnings and Centrica announces its aims to reduce costs

Five challenger energy suppliers required to participate in Ofgem’s ECO3 Energy Efficiency Scheme after hitting customer threshold

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