Switching rate for energy suppliers hits 5.1 million in 2007

Figures from energy regulator Ofgem show that the switching rate for gas and electricity suppliers hit more than five million in 2007, as energy customers went in search of cheaper deals. This is the highest level of switching for five years.

All the major energy suppliers have now increased their bills this year. However customers who have yet to switch can still save on average £92 if they pay by standard credit. They could save even more if they also switched to cheaper payment methods such as direct debit.

Ofgem Chief Executive, Alistair Buchanan, said: “The number of customers switching supplier is increasing and five million account switches alone in 2007 shows that suppliers who don? t offer competitive prices and good service will lose customers.

“However, some customers have voiced concerns about the market and we have responded by launching an investigation to examine whether it is working effectively for all customers.”

Suppliers losing customers to rivals is further evidence of vigorous competition in the energy markets. Scottish and Southern Energy has overtaken E.ON to become the second biggest energy supplier in Britain after British Gas. Suppliers continue to compete with tariffs to suit customer needs, including fixed-price deals, online account deals and green electricity tariffs, which together amount to around nine million accounts to date.

Research conducted for Ofgem shows that certain customers including pensioners, the unemployed and those on low incomes are switching less than other groups. So Ofgem has launched a pilot campaign „Energy Best Deal? with Citizens Advice to encourage more of these customers to switch to a better deal.

The scheme involves training advisers from Citizens Advice, housing associations and other organisations that deal directly with people on low incomes to help customers reduce bills by explaining how they can switch. They will also advise customers on what support is available to them from the Government and industry to help them to better manage their bills.