Glimmer of Hope: Half of consumers believe we're past the worst of the energy crisis, with wholesale prices now at summer 2021 levels
Nearly half of consumers (47%) believe we’re past the worst of the energy crisis[1], with four in ten (42%) feeling more optimistic than they were last year[2]
Uswitch is seeing green shoots of competition as spring approaches, with new deals priced lower than the cap and wholesale prices at summer 2021 levels
But a quarter of households (26%) fear energy prices will rise before next winter, and three quarters (76%) don’t think they’ll see prices fall to pre-crisis levels any time soon[1]
Four in ten (44%) would like to switch deals or providers[3], but nearly three quarters (73%) believe suppliers could reduce fixed deal prices quicker[2]
Three in ten households (29%) fear they’re missing out on deals being offered to other customers[2]
Uswitch.com urges households to get switch-ready by signing up for emails to hear about exclusive flash energy deals.
Nearly half of households (47%) believe that the worst of the energy crisis is behind us[1], with four in ten (42%) feeling more optimistic about bills than this time last year[2], reveals research from Uswitch.com, the comparison and switching service.
The new price cap level for April 1 to June 30 is expected to fall 16% from current levels when it is announced later this month (23 February), with predictions of a further 7% drop in July.
Uswitch industry analysts are seeing the green shoots of competition return to the market as spring approaches. Experts have seen increasing numbers of fixed deals priced below the cap enter the market in recent weeks thanks to wholesale energy costs at levels last seen in summer 2021.
One in seven (14%) households believe the UK is past the worst of the energy crisis, and expect prices will fall to ‘pre-crisis’ levels by the end of the year. A third (33%) agree that we’re through the crisis, but don’t expect prices to drop to that level anytime soon[1].
Not everyone is so optimistic, however, with a sixth of households (16%) thinking prices will stay at the same level, and a quarter (26%) expecting that energy bills will rise again before next winter[1].
In total, more than three quarters of households (76%) don’t believe that energy bills will return to the level they were pre-crisis any time soon[1].
| Location | Proportion who feel worst of the energy crisis is over |
|---|---|
| West Midlands | 60% |
| Scotland | 58% |
| London | 56% |
| North West | 48% |
| East Midlands | 46% |
| North East | 44% |
| Wales | 44% |
| Yorkshire and Humberside | 44% |
| South East | 42% |
| South West | 40% |
| East of England | 38% |
| Northern Ireland | 34% |
Men are generally more optimistic than women, with 53% of males believing we’re past the energy crisis, compared with 42% of females. Younger consumers have a much more positive outlook, with 61% seeing a light at the end of the tunnel, compared with 42% of over-55s. Residents of the West Midlands, Scotland, and London are optimists, while those in the South West, the East, and Northern Ireland feel less positive about energy[1].
There’s a huge disparity between households on different tariffs, with three fifths of those who have chosen a variable tariff (62%) feeling ‘glass half full’, while only a quarter of those on prepayment meters (24%) feel the same way[1].
Competition in the energy market has been sluggish since the Energy Price Guarantee ended last summer, and many suppliers have preferred to offer deals to their own customers only. Three in ten households (29%) believe that they’re missing out on deals being offered to other customers[2].
Four in ten (44%) households would like to switch deals or providers[3], with almost half (45%) searching for offers in the last six months[4]. But nearly three quarters of households (73%) believe suppliers could be reducing the prices of fixed deals quicker[2].
Uswitch.com is urging households to get switch-ready by signing up for emails to hear about exclusive flash energy deals as soon as they launch.
Will Owen, energy expert at Uswitch.com, comments: “After more than two years of record high energy prices, it’s a glimmer of hope that so many people are feeling more optimistic about the prospect of their bills falling.
“We’re not out of the woods yet, and it’s important to remember that the wholesale market is unpredictable, and prices can rise for a number of unforeseeable reasons.
“There are more fixed deals available now than this time last year, but still significantly less than before the energy crisis.
“There is also less overall competition in the market, in part due to market regulations such as the Ban on Acquisition-only Tariffs (BAT).
“This means energy providers must offer the same price to new and existing customers - and so providers are less able to offer attractive discounts to attract new business.
“Households should be ready to pounce when a good energy deal is announced. Signing up for email alerts means you can be at the front of the queue for the best deals.”
Get switch-ready by signing up for email alerts from Uswitch here.
Notes
Research conducted online by Opinium, 26th to 31st January 2024, among 2,006 UK energy bill-payers, weighted to be nationally representative.
1. Respondents were asked ‘Which of the following best describes your thoughts on the current 'energy crisis’?’ 14% said ‘I believe we’re past the worst of the energy crisis and prices will fall to ‘pre-crisis’ levels (2021 and earlier) by the end of the year.’ 33% said ‘I believe we’re past the worst of the energy crisis and prices will fall but not reach ‘pre-crisis’ levels (2021 and earlier) anytime soon.’ 16% said ‘I believe current prices will remain but not get any lower.’ 26% said ‘I believe prices will rise again before next winter.’ 14% + 33% = 47% believe we’re past the worst of the energy crisis. 33% + 16% + 26% = 75% believe that prices won’t fall to ‘pre-crisis’ levels any time soon.
2. Respondents were asked ‘How far do you agree or disagree with each of the following statements?’ 42% agreed with the statement, ‘I feel more optimistic about energy prices than I did this time last year.’ 73% agreed with the statement, ‘I believe energy suppliers could be reducing the price of their fixed energy deals quicker.’ 29% agreed with the statement, ‘I fear I’m missing out on ‘secret’ deals being offered to other customers.’
3. Respondents were asked ‘Which, if any, of the following best describes your views on switching energy suppliers?’ 44% of people said they would like to switch tariffs or providers.
4. Respondents were asked ‘When was the last time you searched for a new energy deal? Please consider the last time you looked even if this didn’t result in you switching supplier.’ 45% had searched within the last six months.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.