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45% of Brits have never switched energy provider

 

  • Gocompare.com Energy offer tips on switching provider in time for National Cut Your Energy Costs Day 2017
  • 45% of Brits have never switched energy provider

 

To coincide with National Cut Your Energy Costs Day 2017, Gocompare.com Energy investigated consumers’ relationship with switching energy in 2016.

 

Taking a look back at how much the average household spent on energy in the past year and what puts so many Brits off switching, Gocompare.com Energy can reveal that 45%* of Brits have never switched energy provider.

 

A recent survey conducted by the comparison site identified the reasons that are stopping so many Brits from switching, including answering too many questions or having to provide too much information (28%). A quarter of respondents also said the process of changing providers or products was too complicated, while 32% said the switching process took too long*1.

 

However, according to Ofgem, a greater proportion of consumers are finding it easier to compare tariffs in 2016 (43%) than in 2014 (37%) and the proportion of consumers who are aware of all of their options in the energy market has increased from 75% in 2014 to 80% in 2016*2.

 

When it comes to making the switch, consumers say they need to save an average of just under £300 per year to change their supplier or tariff. These expectations are similar to those from 2014, despite energy bills reducing for many consumers*2.

 

For a typical customer paying by direct debit, the annual price of the cheapest tariff on the market fell from around £900 at the beginning of 2015 to less than £750 in the first quarter of 2016. As a result, the size of the difference between the cheapest fixed-term tariffs and standard variable tariffs (SVTs) increased.

 

As of 28 April 2016 the average SVT annual bill for the six large suppliers^ was over £300 higher than that of the cheapest fixed tariff available in the market, for a customer paying by direct debit and with typical consumption*3.

 

Ben Wilson, Energy & Home Services Product Manager at Gocompare.com said: “When it comes to saving money, Brits are always on the hunt for the best bargain, but it seems the perceived hassle of switching energy providers often deters many of us from cutting down household bills.

 

“Nobody likes paying more than they have to, especially for everyday needs such as energy. Cutting your costs is all about both taking the time to review what items you’re leaving switched on at home, but also looking at what other deals are out there. We recommend Brits check their energy consumption and bills thoroughly each month and look to switch at least once a year.”

 

To find out more about how to cut down your energy costs during winter please visit: http://www.gocompare.com/gas-and-electricity/winter-saving-stats/

 

*Statistic correct as of 9th May 2016

^’Six large suppliers’ refers to the former gas incumbent (British Gas), and the companies formed from the former regional electricity incumbents (EDF, E.ON, npower, ScottishPower and SSE)

 

 

Sources:

*1 http://www.gocompare.com/press-office/2016/mortgage-hardest-product-to-switch/

*2https://www.ofgem.gov.uk/system/files/docs/2016/08/consumer_engagement_in_the_energy_market_since_the_retail_market_review_-_2016_survey_findings.pdf

*3 https://www.ofgem.gov.uk/system/files/docs/2016/08/retail_energy_markets_in_2016.pdf

About Go Compare Energy

 

Gocompare.com is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs. Gocompare.com does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. Gocompare.com makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site. Gocompare.com does not sell its customers’ data.

 

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. Gocompare.com has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

 

Gocompare.com is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

 

 

About the author: admin

 

Oxford based journalist and consultant, who writes about business, especially the global energy business including exploration. Also editor Oxfordprospect.co.uk. Writes about a variety of topics including production, power generation including renewables, innovation, investment, markets, technology, regulation, leadership, policy making and management.

 

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