For the first
time in six years, national figures show there has been a decrease in the
number of UK homeowners changing their energy supplier to switch to a more
competitive tariff, to lower their bills.
During 2020, amid the COVID-19
pandemic, there were 436,000 fewer consumers* making savings on their energy
bills via comparison websites such as Free Price Compare – with the months of
March through to December revealing a significant reduction in the amount of
households switching provider compared to 2019.
This trend is
surprising as the uncertainty of COVID-19 would lead many to believe
consumers would be tightening their belts wherever possible, saving on
costs in all areas of everyday spending.
With more than half of UK
customers** still currently on an unnecessarily expensive variable energy
tariff – a trend that has remained unchanged for the last five years – if
everyone switched now to competitive fixed rates, utilising a comparison
site, then collectively over £2.6 billion could be saved*** and instead pumped
into local economies in times of need.
Regionally, the biggest collective savings to be made by customers switching from a variable to a fixed tariff are in the South East (the area covered by Seeboard) – at potentially over £345 million – whereas, in the entirety of Scotland it is just £85 million. For all regional statistics***, including the average annual bill of a fixed tariff versus a variable tariff in each region, visit: https://freepricecompare.com/home-energy/covid-19-impact-on-uk-energy-market/
Director at Free Price Compare, Shailesh Ramani, said, “Switching energy provider to obtain a competitive
fixed rate is a quick and hassle-free process, which can save most individuals an
average of £318 if they are switching with us from a standard variable tariff. However,
in the UK, so many homeowners are seemingly hesitant or reluctant to change supplier.
It’s incredible to think that approximately £2.6 billion could be saved, if as
a nation we were all aware of just how easy it is to switch and save.
“2020 was certainly a very
difficult year for many, with COVID-19 having a negative impact on many
household incomes. Although you would think this might mean more consumers
reviewing their regular spending and monthly direct debits, when it comes to
switching to cheaper energy tariffs with an alternative supplier, fewer people
were doing so last year – in fact over 436,000 less than in 2019. This trend
seems to be continuing into 2021, and could be purely because consumers have more
important things on their minds than energy bills – despite the fact that
savings could be considerable during such uncertain times when many of us are also
working from home using more gas and electricity.
“With the recently announced
price cap rise for default tariff customers now coming in as of the beginning
of April, consumers are being urged to switch from a variable to a fixed tariff
as soon as possible to avoid the higher rates and yet more costly bills.
“Currently some of the best deals
on the market are dual fuel tariffs with E.ON, and I would encourage any
homeowner to spend the five minutes it takes to look into, with no obligation,
what they could be saving on a fixed tariff via Free Price Compare – the site
that compares more energy suppliers than any other comparison website in the UK.”
To find out more about how to switch energy provider, in order to
secure a more competitive tariff, go to www.freepricecompare.com.