Record number of consumers switched energy supplier in 2017

More than 5.5 million energy customers switched electricity supplier last year, marking a new record and suggesting that more people are becoming savvier about the deals available.

Energy UK, the trade association for the country’s energy industry, said on Thursday that 400,000 switches in December alone took the total annual switching figure to 5,543,472, which marks a 15 per cent increase on 2016’s number.

The trade group said that there are now almost 60 energy companies across the UK to choose from meaning that competition has become fierce.

Nearly three in ten customers who switched opted to go to small and mid-tier providers, Energy UK said. 

“It is tremendous to see switching surpassing all expectations during 2017,” the group's chief executive Lawrence Slade said.

Stephen Murray, energy expert at price comparison website MoneySuperMarket, welcomed the news too and said that it was “a further indication of how competition from medium and smaller suppliers is breaking the big six stranglehold”.

Nonetheless, he also pointed out that the 2017 number still represents less than one in five UK households, and said that many of those who are not switching are still on standard variable tariffs (SVTs) which are often the most expensive. He urged those customers to “take matters into your own hands”.

“The average household can save £250 or more [by switching],” said Mr Murray.

Rising energy bills have been at the centre of a fierce debate for months, with consumer group’s repeatedly urging the Government and regulators to crack down or hikes, especially for vulnerable customers.

On Wednesday, Dermot Nolan, regulator Ofgem’s chief executive, said that a price cap could come into effect as early as Christmas 2018. 

In December, Ofgem ranked the country’s top ten largest suppliers on how many customers they have on SVTs.

SSE came bottom, behind British Gas.

Ofgem said at the time that SVT are still around £300 more expensive on average than the cheapest deals on the market.

It said that a trend towards switching providers was accelerating, but that as of the end of September 2017, around 57 per cent of customers were still on SVTs.