If you have been with the same energy provider for three years or more, you should probably switch. Staying with your same provider will lead to you overpaying. They will increase the price of your bills without letting you know. This is why 6.4 million customers switched their electricity suppliers in 2019. This broke the record of 5.8 million in 2018. This marks a 9 percent increase in household switching suppliers in 2019. April was the highest figure in a single month. Small and medium suppliers are benefiting from switching their behavior. The rate of gains has slowed in comparison to earlier years, which follows the collapse of several small suppliers in 2019 after similar collapses in 2018.
A Record Year in Energy Supplier Switches
Figures supplied by Energy UK demonstrates that switching is becoming normal for households reaching the end of their fixed deals. Since 2014, when over 3 million households switched, the number of people switching electricity providers has doubled. The figure has steadily increased over the past five years. 660,000 customers switched providers. More than half a million customers switched every month, with almost 520,000 switching in the last month of 2019. This was an increase 12 percent on December of 2018.
Moving into the Future
With so many people realizing that they could switch energy suppliers and save money, more people will switch energy suppliers in 2020. This is because there are new suppliers popping up and offering enticing deals for people to switch to their company. Figures show that small and medium suppliers are gaining customers from what have been typically called the Big Six energy suppliers.
The rate of customers switching away from major providers has slowed down according to MoneyPug, the site used commonly to make an energy switch. Smaller providers have gained one and a half million customers than they lost to larger suppliers. Long-term trends show more customers moving from small and medium providers back to larger ones. Only seven percent of electricity switches were from small and medium suppliers to large ones. 2020 will have many more people than ever realizing that they can save money by finding a better provider.
Switching your Supplier
You can save up to £350 for a household with average energy use by switching suppliers. Call your current provider to see exactly how much you are paying. Then you can call other companies for quotes to see how much you could save by switching and seeing if they will offer any deals. The more you look around, the more you will be able to find a cheaper provider for your household energy.
The Changing Market
There has been a concerted effort to encourage customers to shop around for cheaper deals. The increase in people switching shows the success of the initial push. Ofgem released a report that found 53 percent of domestic customers were on expensive default tariffs. This is a figure that hadn’t changed year-to-year. A large proportion of customers aren’t inclined to switch or simply don’t feel confident to navigate the market. People may complain about switching, but those who do so find that they can find a cheaper alternative to their current provider.
What if I Rent?
If you are renting, try to be straightforward with your landlord if the bills are in their name. However, if the electricity bills are in your name, you won’t have to worry about talking to them about it. If the landlord has a preferred supplier, you have the right to change it and can do so by explaining to them that you can save money by finding someone who can offer the same or better service at a cheaper price.
Whatever you are paying your energy supplier, if you have been with the same company for a while now you are probably paying too much. It all starts with knowing how much you pay and comparing that to what other companies are offering. Promotional deals can help and some energy providers will give you a deal simply for switching over. You don’t have to pay more than you should. Do what’s right for you and find a company that will ask a reasonable amount for the energy you are using and won’t make you pay for things you are not using.