Inertia over escalating energy bills continues to exist in the UK, according to new research published by Mintel.
The research reveals that just 25% of consumers have changed their energy supplier, with 59% admitting that they had no plans on switching energy suppliers over the coming year.
Commenting on the results of the research, Claudia Preedy, industrial analyst at Mintel, said: “Switching suppler has never been easier, yet the majority of Brits have not and do not plan to make the switch, meaning many people are missing out on considerable savings on their energy bill. While consumers are frequently being encouraged to consider energy options, when it comes to switching suppliers, for most there remains considerable inertia.”
Figures published by the House of Commons Library in August 2014 found that the UK had the fasted rising energy bills in the world
The largest proportion of those that have switched suppliers were motivated by finding a cheaper tariff (48%). Importantly, 6% of those that switched in the last year moved to a supplier which provided green energy.
Preddy explained: “Smaller independent suppliers are gaining market share from the Big Six with many winning customers by offering cheaper tariffs. ‘Green energy’ is also a growing, albeit, still a niche sector of the residential energy supply market. According to our consumer research, around one in twenty changed supplier in the last 12 months to switch because they wanted a supplier who provides ‘greener’ energy.
“Meanwhile, one in ten consumers planning to switch or who are unsure about switching in the next 12 months, would do so to switch to a ‘green’ supplier, which is encouraging news for the green energy industry. In line with this, ‘green’ energy suppliers are reporting strong customer growth.”
Of those surveyed who said that they would be interested in switching suppliers in the next 12 months (18%), one in ten said that they would switch to a supplier who provides ‘greener energy’, with 16 to 24-year-olds the most likely (15%).
In an interview with The Times, the new head of Ofgem, Dermot Nolan admitted that consumers are currently overpaying for energy. Nolan blamed a lack of households switching suppliers for the current high price of energy. The energy watchdog committed in the summer to slashing switching times down to three days and implement next day switching by 2018.