The average annual saving made by customers switching energy tariffs has risen to £228 – the highest since 2011, according to figures from Uswitch.com, the independent price comparison and switching service.
The increase in the average saving has largely been fuelled by the introduction of highly competitive deals from new, smaller providers who have taken market share from the big six energy providers. Figures from Energy UK reveal that 1.3 million customers moved from a large supplier to a small one in the last twelve months, equivalent to 41% of all switches.
Uswitch.com data reveals that the average customer saving is now £228, up from just £138 in May 2012 and £170 in May 2011. The figures also show that some customers, particularly those who have not switched for some time, are now saving in excess of £400 a year.
More recently, competition in the market has been hotting up following a number of competitive tariff launches by the big six, responding to cut-price deals from smaller suppliers. There are now a total of nine deals under £1,000 – which is more than at any time since 2012.
Small suppliers are also setting a high bar when it comes to customer service, with the two biggest new providers – Ovo Energy and First Utility – coming in first and second place overall in Uswitch.com’s ninth annual Customer Satisfaction Report.
Ann Robinson, Director of Consumer Policy for Uswitch.com, says: “Competitive tariffs from small energy providers have fuelled an increase in the money people can save through switching.
“This is strong evidence that competition is beginning to work in the energy market. Frustratingly, only a minority of people are taking advantage of lower prices and so vast numbers are paying unnecessarily through the nose for their energy.
“We are urging the Competition and Markets Authority to look at ways to better engage consumers in their ongoing market investigation, as this is key to making competition work.”
| Average savings figure for dual fuel customers | ||||
|---|---|---|---|---|
| Six months to | Average dual fuel customer saving | At least 10% of customers who switched saved | ||
| May 2009 | £192 | £406 | ||
| Nov 2009 | £254 | £462 | ||
| May 2010 | £304 | £544 | ||
| Nov 2010 | £247 | £470 | ||
| May 2011 | £170 | £413 | ||
| Nov 2011 | £152 | £371 | ||
| May 2012 | £138 | £328 | ||
| Nov 2012 | £156 | £315 | ||
| May 2013 | £139 | £276 | ||
| Nov 2013 | £175 | £350 | ||
| May 2014 | £204 | £383 | ||
| Nov 2014 | £228 | £412 |
Source: Uswitch.com based on dual fuel customers using the website between May 2009 and November 2014
Notes to editors
Consumers refers to those who are involved in paying a dual fuel provider for their household energy.
| Best Buy plans paying by monthly Direct Debit (correct as of 29 December)** | |||||
|---|---|---|---|---|---|
| Supplier | Plan name | Average bill size | Tariff type | ||
| Co-op Energy | Fair & Square March 2016 | £938 | Fixed | ||
| Extra Energy | Merry Christmas Fixed Price Jan 2016 v1 | £950 | Fixed | ||
| First Utility | iSave Fixed March 2016 (v41) | £951 | Fixed | ||
| npower | Fixed Energy Online April 2016 | £963 | Fixed | ||
| ScottishPower | Online Fixed Price Energy January 2016 | £970 | Fixed | ||
| OVO Energy | Better Energy (all Online) | £973 | Fixed | ||
| Green Star Energy | Rate Saver 12M Fixed 1412 (paperless) | £987 | Fixed | ||
| Sainsbury’s Energy | Fixed Price January 2016 | £998 | Fixed | ||
| EDF Energy | Blue+Price Promise May 2016 | £999 | Fixed | ||
| Woodland Trust Energy** | Better Energy | £1,033 | Fixed |
Source: Uswitch.com
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
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