Over four million customers switched energy supplier in 2006

Over four million customers voted with their feet by switching their energy supplier last year according to energy regulator Ofgem. Switching numbers for the first ten months of 2006 were 750,000 higher than for the same period in 2005.

Research by Ofgem shows this high level of switching is hitting the market share of some of the former monopoly suppliers. British Gas’ market share of the household gas market has fallen below 50 per cent for the first time. In electricity the market share of former regional monopoly suppliers has also fallen below 50 per cent in Norweb (North West), East Midlands, Northern, Midlands, and Yorkshire.

Ofgem Chief Executive, Alistair Buchanan, said: “Energy customers have given expensive suppliers the boot with over four million moving to a cheaper supplier in the first ten months of 2006. This dynamic market is most dramatically illustrated by British Gas seeing their share of the household gas market fall below 50 per cent for the first time. This is clear evidence that Britain has the most competitive energy market in the world and that customers are taking full advantage of this.

“Our competitive energy markets have attracted over £10 billion of investment in gas importation projects which are now beginning to take the heat out of wholesale gas prices.
“While British Gas has already indicated that they will be cutting prices this year, Ofgem will be watching all energy suppliers to make sure they compete as wholesale prices fall as hard as they did when prices rose. However, there is no need to wait for prices to fall - customers who have never switched can cut their bills now by around £150 by getting a better deal for their energy.”

Customers who have already switched supplier should still check they are getting a good deal for their energy as their supplier may no longer be offering them the best one. This also applies to customers who are coming to the end of a fixed price deal.