5 million looking for cheaper gas and electricity

More than five million domestic energy customers looking for cheaper deals switched suppliers in 2007, according to regulator Ofgem.

The figure was the highest for five years and came ahead of the latest raft of gas and electricity price rises.  The “vigorous competition” in the industry has resulted in Scottish and Southern Energy becoming the second biggest energy supplier in Britain.

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Ofgem claims that 5.1 million households switched supplier in 2007, compared with 4.8 million during the previous year and 4.3 million in 2005.
The regulator said that there was competition over tariffs, including fixed-rate deals, online account deals and green electricity tariffs.

It claimed that, on average, anyone yet to switch and who paid by cheque, cash or plastic could save £92 on their annual bill.

All of the big six energy suppliers have raised gas and electricity prices for domestic customers in 2008, often by double-digit percentages, pushing the average annual household bill above £1,000.

Consumer group Energywatch said that the good news on switching should not mask the issue of rising bills.

“For millions more consumers switching to a cheaper tariff is either fraught with difficulty or just plain impossible,” added Adam Scorer, Energywatch director of campaigns.

“No-one can seriously think that switching, by itself, provides the answer for Britain’s besieged energy consumers.”

recent energy prices unfair

A recent price increase from leading Electricity and Gas companies is unfair says a watchdog. Three energy companies have raised prices by around 15% on average. They blame soaring wholesale prices but energywatch says the market is not competitive enough.

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