- The annual saving made by consumers switching energy tariff has soared to £337 – more than at any point since 2009, according to new data from uSwitch.com
- 10% of consumers who switched saved more than £567 in the last quarter of 2015 – up from £429 in 2014
- The average cost of the market’s cheapest deal has fallen by a staggering 8% or £66 in just five months
- The new figures come ahead of Competition and Markets Authority proposals on ways to encourage more customers to shop around for better deals.
The average annual saving made by consumers switching energy tariffs soared by over 40% to £337 last year – the highest in seven years – according to new data from uSwitch.com, the independent price comparison and switching service.
The growth in the average saving last year was fuelled by a rising number of new energy suppliers launching increasingly competitive deals. According to the new analysis, at least 10% of dual fuel customers who switched saved more than £567 in the last three months of 2015 – up from £429 during the same period in 2014.
This year, the price of the cheapest tariff continues to plummet, with suppliers, big and small, battling it out during a winter price war to win new customers. Suppliers launching market-leading deals so far this year include E.ON, Extra Energy, GB Energy, SSE and npower. The current cheapest dual fuel plan, from GB Energy at £765 a year, is a staggering 8% or £66 less than the best-priced tariff at the start of September 2015 and is the cheapest on the open market for five years.
With the Competition and Markets Authority (CMA) due to publish provisional remedies from its energy investigation next month, today’s figures illustrate that competition is working well in a small part of the market. However, 70% of consumers remain on expensive big six standard tariffs, which are an average of £326 a year more expensive than the cheapest deal. uSwitch.com is renewing its call on the CMA to propose tough new measures to encourage more consumers to engage with the market to help them manage sky-high energy bills.
Tom Lyon, energy expert at uSwitch.com, says: “Energy suppliers big and small continue to battle to win customers by launching ever-increasingly competitive fixed rate tariffs. Unfortunately, only a minority of consumers are taking advantage of these deals, so vast numbers are unnecessarily paying well over the odds for their energy.
“The fact that such big savings are there for the taking shows the huge potential for making the market work for consumers. All eyes are now on the CMA to propose bold recommendations next month to boost low customer engagement, which is key to increasing competition, lowering bills and improving customer service.”