Switching levels plummet to an all-time-low
New data released by DECC shows that the number of households switching energy provider has plummeted to an all-time-low. DECC has revealed that Q4 2011 saw the lowest number of electricity transfers since records began in 2003, while the numbers switching gas were second lowest only to Q1 2003. This means that, overall, switching has never been lower.
Tom Lyon, energy expert at uSwitch.com, says: "This tells us what a sorry state the energy market is in today. The number of people switching is a simple acid test that tells us the current state of health of the market. What we can see today is that it is on the critical list, with trust and confidence at an all-time-low. Ofgem now has no choice - its Retail Market Review has to deliver. And with switching at a record low it's not enough just to stop the rot. Ofgem has to reverse the tide and get people engaging in the energy market again. We may be starting at a low-point, but it provides a very clear benchmark by which the success of the market review can be judged.
"What these figures also tell us is that consumers are losing out - this low-level of switching is costing consumers money. With household energy bills at an eye-watering £1,252 a year, people cannot afford to be paying hundreds of pounds more for their energy than they need to. Unfortunately, Ofgem's reforms will take time to come through and very few consumers can afford this delay so I would urge them to help themselves by shopping around for a better deal today."