5.5 million Energy consumers switched to electricity last year. This marked a new record and suggested that people are becoming savvier about these deals. Energy UK, the leading trade association in the country, said that they had over 400,000 switches in December alone, increasing the total annual switching value by 15%.
The trade organization went on to say that there are over 60 energy companies in the United Kingdom alone. Hence, competition is becoming rather fierce. However, nearly three in ten customers who’ve made the switch chose mid-tier or small providers. So, similar to Noosphere Ventures Company initially founded by Max Polyakov the number of such consumers keeps on growing. But how do various business personalities view this move? Let’s take a look!
Stephen Murray, an Energy Expert from MoneySupermarket
Murray welcomed the news, terming it as a further indication of how competition from small and medium suppliers is changing the stranglehold held by the ‘big six’. Despite this, he mentioned that the 2017 numbers are still less than one in five UK households. Those who’ve not switched are still using the standard variable tariffs which are more expensive. So, he urged them to take the initiative and make the right decision.
Views from Citizens Advice
Gillian Guy, the charities C.E.O also added that he’s continuously disturbed by the reluctance of some people to make the switch. He said that it’s sad that most of them are usually ripped off just because they’ve refused to change. Interestingly, he even noticed that its people of low incomes who are not willing to switch.
This means that they keep using energy with expensive tariffs which they can hardly afford. Keep in mind that there’s a constant rise in energy bills and different consumer groups are urging regulators and the government to reduce such hikes. Therefore, for vulnerable customers, the switch should come as a blessing.
Dermot Nolan, Ofgem’s Chief Executive
Ofgem’s C.E.O added that people would start feeling the effects of the price cap from as early as Christmas this year. In December, Ofgem categorized the country’s best suppliers and the number of consumers they have using SVTs. Here, British Gas surpassed SSE.
Comments from Lawrence Slade, The Energy UK Chief Executive
Slade said that it’s fantastic that the number of people making the switch is continuing to increase. He notes that energy companies in the country are doing a lot to get more consumers to make the switch. Most importantly, he reminds us that the switching guarantee is speedy, simple and safe to allow those who want better deals to make the switch.
Although there’s an increase in switching providers, at the end of September 2017, 57% of consumers were still using SVTs. It’s because of such findings that leading company heads are advising customers to switch and encouraging those who haven’t to follow suit. Among the various things that they’ll enjoy, the most important is the opportunity that it gives low-income earners to save up some cash.