- The annual saving made by consumers switching energy tariffs has soared by almost a third to £292 a year – more than at any point since 2010, according to new data from uSwitch.com
- The new figures come ahead of provisional findings from the Competition and Markets Authority (CMA) on ways to boost competition in the market
- All of the current top ten energy deals are priced at under £950 a year – compared to only two deals at the end of 2014
- 10% of customers who switched saved more than £512 in the first half of 2015 – up from £412 in the second half of last year
- uSwitch.com is calling on the CMA to propose remedies to boost consumer engagement, to further increase competition and lower energy bills.
The average annual saving made by consumers switching energy tariffs has soared by almost a third to £292 a year – more than at any point since 2010, according to new data from uSwitch.com, the independent price comparison and switching service.
The figures come ahead of provisional findings from the Competition and Markets Authority (CMA) on ways to make the UK energy market work for consumers by increasing competition between suppliers. The rise in the average saving has been driven in part by a string of highly competitive deals over the winter from new, smaller providers, who have stolen eight per cent of market share from the big six energy suppliers since January 2013.
All of the top ten deals are currently priced at under £950 a year – compared to just two tariffs at the end of 2014. The current cheapest dual fuel plan, at £870 a year, is a staggering £68 less than the best-priced tariff at the end of last December and at a price level not seen in the market since November 2010.
According to the latest data, at least ten per cent of dual fuel customers who switched saved more than £512 between December 2014 and May 2015 – up from £412 in the second half of last year. Consumers switching from standard variable to fixed tariffs saw the greatest savings, slashing an average of £334 from their annual bills.
With the CMA due to report provisional findings from its energy investigation before the end of the month, the figures suggest that while competition is working in a small part of the market, the majority of consumers still remain on expensive standard tariffs. uSwitch.com has called for remedies from the CMA to encourage more consumers to engage with the market, as the most effective way to further increase competition, lower prices and improve customer service.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “New, smaller energy providers have helped drive the money people save by switching to a five year high. Unfortunately, only a minority of consumers are taking advantage of these deals, so vast numbers of consumers are still unnecessarily paying over the odds for their energy.
“The fact that big savings are there for the taking shows the huge potential for making this market work for more consumers. All eyes will be on the CMA later this month for its recommendations on how to boost low customer engagement with the market. We believe this is key to increasing competition, lowering bills and improving customer service.”