Energy Switching DECLINED further by -19% in September YoY
The latest electricity switching figures from Energy UK shows a further decline by about 19% year-on-year in September. We reported that in August, 2020 there was a 17% decline year-on-year.
It was thought that the market was recovering back in July when month-on-month figures were up by 17%, and only down marginally by -1% YoY:
Overall figures for the year show a 7% decline for the year up to September.
The latest figures also show an increase in those switching from larger to small & mid-tier suppliers:
In September the net gain by small and mid-tier suppliers was 170,883 or 35% of all switches.Energy UK
We stated last month that energy figures would start to pick up as the temperature in the UK decreases and we head into the coldest part of the year. This typically is the trigger that sends people down the route of switching energy providers when they find higher than expected energy bills coming in.
Whilst month on month shows an increase of 3.68%, this is compared to a figure that was already low versus the same time last year, and on a decline versus July by about 5.95%.
It could be coincidence, but it was slightly warmer in September 2020 vs the same month last year — which could be a potential contributing factor. Though it’s largely thought that the change to Energy Price Caps will further lower demand in switching given that Ofgem cut its price cap figures from £1,126 to £1,042 for the next 6 months. There’s less incentive to switch, even if there are further savings, if energy bills are already declining for consumers.
That said it’s worth shopping around to find the best energy deal – as it could save you a good amount of hard earned cash – despite what appears to be reduced consumer confidence in switching.