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What does this chart show?
That the number of customers who have switched gas and electricity suppliers has reached record highs in the past three years, according to data from the Office of Gas and Electricity Markets (Ofgem).
Switching reached its peak in April 2019, when 1.16m supplier switches took place, supplanting a record 1.07m switches in the previous month.
The total number of switches between January and September 2019 came to 8.04m, compared with 7.32m in the same period last year.
Ofgem compiled the data by looking at the number of meter points gained by a supplier when a customer chooses to change their provider.
What does this tell us about domestic gas and electricity switches?
Ofgem’s data show that the number of switchers has been on the rise since 2014. Switches in gas and electricity suppliers typically follow a seasonal pattern, with peaks in March and November, and troughs in January and the summer months. However, the usual pattern has been disrupted since February 2018, with switches staying relatively consistent since then.
Rik Smith, senior commercial manager at uSwitch, said: “Competition in the market has undoubtedly benefited consumers over the past decade, providing them with an escape route from price increases.”
The number of customers choosing to switch electricity supplier in the 12 months to September 2019 was 9 per cent higher than the same period a year before. For gas switchers, the 2019 period saw 7 per cent more switches.
According to Mr Smith, annual switching levels have risen from 11 per cent of energy customers in 2014 to 20 per cent of customers today.
“The more customers who are switching, the fewer who are sticking on poor-value standard variable tariffs. Fifty-three per cent of households are currently on SVTs.”
“Once there are fewer than 50 per cent of households on SVTs, then we really will have reached a tipping point. People on the poorest value deals will be in the minority for the first time, meaning suppliers will have to fight even harder to attract and retain customers.”
What can consumers do if they want to switch energy suppliers?
New products and apps have sprung up to help consumers who want to change their energy provider. Switchcraft, for example, is a free service that automatically switches its customers to cheaper energy providers.
Audrey Gallacher, interim chief executive at Energy UK, said switching had been simplified by the Energy Switch Guarantee, a voluntary code that suppliers sign up to in order to ease the process.
“Consumers should feel confident to choose the best deal for them without worrying about their switch, losing supply or when they will receive their final bill.” Ms Gallacher said the guarantee covers about 85 per cent of the market.
Natalie Hitchins, head of home products and services at consumer group Which?, said people should think about customer service, as well as price, when switching energy suppliers.
“Switching remains one of the quickest and most effective ways to save on your energy bills, so it is no surprise [that] hundreds of thousands of customers are moving suppliers every month.”
The best providers not only offer value for money but are judged by aspects of customer service such as the clarity and accuracy of their bills, she added.
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