Switch on to switching
Despite the growing awareness of the savings available when opting for fixed tariffs, recent figures from Ofgem revealed just a quarter of customers switched supplier in 2019 (24%). And just 18% switched to a new tariff[vi]. The regulator also revealed almost half (49%) of customers have NEVER switched, or have only switched once[vii]3.
To understand more about the reasons why people avoid switching tariffs, Loop recently conducted a consumer survey[viii] which found that a quarter of people (25%) don’t switch supplier as they’re happy with their bills as they are. This figure rose to over a third (35%) for those aged over 65.
Perhaps surprisingly, more than one in ten (13%) people admitted they “couldn’t be bothered” to switch, and a quarter (25%) aren’t aware of the financial savings available to them.
But many are unaware that there are deals to be had. More than one in ten (13%) of those that have never switched said they trust their supplier to always give them the best deal, but Loop’s research revealed they could be paying hundreds more for their bill than if they were on the cheapest available deal with the same company[ix]. 13% of people said they don’t understand the options available to them, or feel anxious or stressed at the thought of going through the process.
With quick and easy tariff switching built into the app, an energy-saving assistant like Loop lets you choose the tariff that’s right for you, based on the actual energy you use and guides you through the process, step-by-step, in less than ten minutes.
Steve Buckley, Head of Data Science at Loop, said:
“Too many customers are being exploited by energy companies after they roll over onto default tariffs, so checking you’re on the best available deal is vital for keeping costs low. It doesn’t matter whether you rent or own your home, every customer is entitled to switch their energy supplier and by ensuring you aren’t on an Standard Variable Tariff, you won’t be paying more for your energy than you need to.”
“It’s clear from our research that many consumers are placing too much trust in their suppliers, but energy companies have no responsibility to ensure customers are on the best deal. If you haven’t switched supplier or tariff for over a year, there’s a strong chance you could be on a pricey standard variable tariff, so use an energy-saving assistant like Loop or compare deals to find a cheaper option in vital.”
“So many people don’t know where to start when it comes to cutting costs and It can often feel overwhelming when people are already leading busy lives, but it doesn’t need to be confusing. In reality, the process of switching is now quicker and simpler than ever and you could save hundreds on your bills.”
[i] Average saving for dual fuel and electric tariffs (£93 x number of customers on default tariffs (11million)
[ii] Data from Ofgem – https://www.ofgem.gov.uk/publications-and-updates/energy-price-cap-will-give-11-million-fairer-deal-1-january
[iii] Average estimated price increase for dual fuel customers who are on SVTs.
[iv] Average estimated price increase for electricity customers who are on SVTs.
[v] The annual estimated bill for Octupus’ fixed tariff was £900, £227 cheaper cheaper than the estimated yearly bill the highest-priced SVT (£1,127).
[vi] Data from Ofgem State of the Energy Market 2019 https://www.ofgem.gov.uk/system/files/docs/2019/11/20191030_state_of_energy_market_revised.pdf
[vii] Data from Ofgem State of the Energy Market 2019 https://www.ofgem.gov.uk/system/files/docs/2019/11/20191030_state_of_energy_market_revised.pdf
[viii] Consumer survey conducted by 4Media and surveyed 2,002 adults living in the UK.
[ix] The annual estimated bill for Octupus’ fixed tariff was £900, £227 cheaper cheaper than the estimated yearly bill the highest-priced SVT (£1,127).