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The market in the United Kingdom caters roughly to 30 million households, which means that one in every five customers changed their supplier in the last 12 months. There were 530,000 switches a month on average, with April peaking at 670,000 according to Energy UK. Why are so many people switching their energy providers?
Competition in the Market
In 2014, the figure was twice that, when the number of switches reached over three million. It represents a nine percent increase in 2018. On average there were 12 household switching energy suppliers every minute in 2019. Competition has continued to flourish in the market or energy suppliers. Customers are benefitting from innovative products and services. With 60 energy suppliers and a rapidly changing market, it has come to the point that there is finally more than the infamous Big Six.
Figures underline just how much new brands like Bulb, Ovo, and Octopus have loosened their grip on the domestic market in the last few years. 167,000 customers switched from market leading companies to smaller firms in December. Now they collectively hold about 30 percent of the UK market share. According to the site MoneyPug, which is known for being used as an energy comparison site, figures show that there are a lot benefits to switching, including potentially saving around £290 a year on their bills.
Cutting Down on Bills & Emissions
Not only can households cut their bills by switching providers, they can also cut down on their greenhouse emissions. That is a huge part of the switch, many green energy companies are offering renewables up to 100 percent. While the completely green companies still may not be the cheapest, 30 percent more expensive than the standard non-renewable gas from other companies, it is still possible to switch to a company that will cut down on your bills while also cutting down on your greenhouse gas emissions.
Changes in the Market
Ovo recently completed its purchase of SSE's household business. This means that it acquired roughly three and a half million new customers and become the UK's second largest supplier with nearly five million homes. In addition, Octopus announced that it would take over the French utility company Engie and their 70,000 customers when the firm decided to leave the UK market. Furthermore, Ofgem has proposed tighter regulations for people entering the market.
Green energy is a huge change in the market. Electricity companies are moving into renewable energy not just because it's what the market demands, but because it is what the planet demands. The company E.On is trying to supply over 100,000 small business customers with 100 percent renewable electricity over the course of the next year. Sourcing energy from supply agreements with wind generators and the purchase of renewable certificates like biomass and solar, E.On is trying to use their renewable energy assets to provide affordable green electricity to many.
Whether it's because they want a cheaper price or they want to switch to a green energy provider, people are switching their utility companies in record rates. No longer do a few players dominate the game. There are many small companies providing innovative energy sources to their customers at competitive and affordable prices. There is no reason that you should keep overpaying for the same dirty energy. When you put the effort in to look at prices and find a company that is right for you, you will be better off in the long run.
However you look at it, the energy industry is changing. We are realizing that we've been living unsustainably and need to find new ways to produce energy. We have the resources, we simply need to implement them. People will no longer pay for overpriced electricity that pollutes our environment. You don't have to be into the politics of it all to want our energy to be cheaper, cleaner, and more efficient. These are things that everyone should want.
