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Energy switching hits all-time low

Government research has revealed that the number of households in the UK switching energy provider has plummeted

New data released by the Department of Energy and Climate Change (DECC) shows that the volume of consumers who switched to a new supplier in the second part of 2013, has dropped as low as 2%.

The news comes at a time when many households have seen their bills rise due to their fixed price deals coming to an end.

Households missing out on ‘longest deals ever’

The Daily Mail reports that many people who are failing to compare and switch providers are in danger of missing out on the best deals.

Labour leader Ed Miliband announced last week that he would freeze energy bills should his party win the 2015 general election, with a 20-month cap being promised.

However, a number of energy providers are already offering deals that could see prices fixed until 2017.

npower’s Price Protector March 2017 allows customers to save £79 per year on the predicted price of bills in the next four years. Meanwhile, EDF and Scottish Power are also offering to fix deals until the start of January 2017, with the former potentially saving consumers £71 per year.

Customers are sceptical about energy providers

Despite a recent BBC survey claiming that 63% of people have found themselves obliged to cut their energy consumption for financial reasons, the Daily Mail cites recent mis-selling scandals as a reason for people not opting to switch.

Earlier this year, Ofgem said it was investigating a number of companies for mis-selling deals, with SSE facing a fine of more than £10.5 million for the “prolonged and extensive” mis-selling of energy to consumers.

However, the Daily Mail warned that anyone who doesn’t fix or move their bills to a cheaper plan could be in danger of facing severe price hikes.

Price rises are expected this winter. It is thought customers will face rises of around £142 on their bills, with experts stating a 5 to 10% rise as the worst case scenario this year.

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  • Paisley Buddy

    I would love to switch energy provider but appears the meter that SP installed isn’t compatible with anyone else. I’ve had energywatch involved but got nowhere. I’m stuck in a monopoly as are all my 11x neighbours. It’s a joke to say this is a free market and you can choose. SP periodically change the meters for calibration purposes yet they continue to be incompatible with others.

    • john

      Just contact your new energy supplier and ask them to change you meter they will charge about £40

  • Fivish

    My monthly DD with EON went up from £138 to £178. That’s a 29% increase!
    And that’s with a recent switch to all lights being florescent or LED. I have full double glazing, cavity wall insulation and 10″ of loft insulation. Why is my bill so high and getting massively higher?

  • Steve

    We have six energy providers who are not in competition. Whats the point of switching providers.

  • lagrangia

    If Energy Utilities engaged in a major price war, switching would be a valid exercise.

  • Juan

    The rising costs to the consumer are the fault of government for owning or controlling the utility companies operating in the UK. EDF is a nationalised company owned by the French Government, EON and Stadtwerke Muenchen GmbH both German state run, Scottish Power is Spanish run (Iberdrola state involved co.), Gaxprom Russia etc . There is no genuine free market competition and democratic consumer choice.
    Reply

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