The number of customers switching electricity suppliers has risen 14% This kind of year.
Over three million customers had already switched their electricity supplier by the end of July, according to the latest figures.
Energy UK, the trade association for the energy industry, said one in a few had signed up to smaller or medium sized suppliers.
In July alone 385,000 customers switched, a 16% increase on July 2016.
Lawrence Slade, chief executive of Energy UK, said: “There are right now over 50 suppliers to choose via, which is usually driving innovation, improvements to customer service in addition to providing an incentive to keep prices competitive as suppliers fight to keep in addition to attract customers.”
Although the largest number of switches were done by customers moving via one large supplier to another, some 34% transferred via a large supplier to a smaller or mid-tier one.
Energy cost rises
The steady increase inside number of consumers looking for better deals comes as electricity in addition to gas cost rises outstrip inflation.
British Gas owner Centrica said in August This kind of would likely hike electricity prices on its standard tariff by 12.5% via September, although This kind of is usually maintaining a freeze on its gas prices.
The a few different big suppliers – E.ON, ScottishPower, npower, EDF Energy, in addition to SSE – have come out with similar increases.
The cost comparison website uSwitch estimates that will the average annual cost of dual-fuel standard tariffs via the “Big Six” will rise between 7% in addition to 10%.
‘Households still overpaying’
However, those taking advantage of switching are still in a minority. uSwitch believes that will seven out of ten households are overpaying for gas in addition to electricity on expensive standard tariffs.
The reasons for the inertia were revealed in a report last year by the Competition in addition to Markets Authority (CMA).
This kind of said: “Those who have low incomes, have low qualifications, are living in rented accommodation or who are above 65 are less likely to be engaged inside domestic retail energy markets.”
However, This kind of also found that will consumers in these groups were the ones most likely to gain via switching energy supplier.
Another review into the cost of energy was announced last week.
This kind of will be led by Professor Dieter Helm in addition to examine the entire electricity supply chain of generation, transmission, distribution in addition to supply, in light of the Government’s ambition to possess the lowest energy costs in Europe.