Slow start to switching in 2022

Energy UK’s latest electricity switching figures show that only 94,428 customers moved to a new supplier in January – a 73% decrease compared to the equivalent period in 2021.

This is the lowest monthly figure since Energy UK started publishing these in 2013 and follows the pattern seen in the last few months of 2021 when switching numbers fell sharply. Record wholesale prices have seen a big reduction in the number of deals on offer with customers deciding to remain on price capped ‘default’ tariffs, which are currently the cheapest on the market.

Movement between larger suppliers accounted for more than 60% of the overall switching in January.

Matthew Cole, Independent Chair of Energy UK’s Energy Switch Guarantee, (a voluntary industry initiative under which signatory suppliers commit to making switching simple, and safe for customers) said:

“With high wholesale costs continuing to affect fixed term deals, we are likely to see low switching numbers for some time.

“Numbers will increase when the market recovers and it remains important that customers are protected by the Energy Switch Guarantee making the process simple, speedy and safe. We also expect that, in the future, switching decisions – and this could be to another tariff with an existing provider, or to a new supplier – will be based not just on price but will increasingly incorporate factors like good customer service, environmentally friendly tariffs and flexible deals.”