Eon, one of the Big Six energy suppliers, is losing customers at an ‘alarming rate’, a new report claims.
Of customers that switched provider last month, 21.65 per cent did so from Eon. On the flipside, just 7.07 per cent switched to it.
This is a net swing of 14.58 per cent, a snapshot of customer switching habits from Compare the Market shows.
The new report found that more people are switching away from the Big Six suppliers
This is in comparison to 17.08 per cent moving to one of the Big Six, a difference of more than eight percentage points.
The shift in custom could well be due to criticism the Big Six received after they all put up their prices by 10 per cent or more in response to Ofgem’s energy price cap increase.
Eon was the first of the Big Six to raise its tariffs after the announcement, raising its price by 10 per cent for 1.8million standard variable tariff customers – giving an annual increase of £117.
All of the other providers followed suit, raising bills by hundreds of pounds for millions of customers.
It is not just the price cap increase that has led to more customers switching to smaller suppliers – Compare the Market found four out of five of the highest saving tariffs came from smaller players.
It revealed the highest saving tariff for customers who switched with Compare the Market in February 2019 was the Pure Planet 100 per cent Green tariff, which gave consumers an average saving of £228 per year.
The second highest savings were from Lumo Energy and the third highest from So Energy – both small suppliers who focus on sourcing renewable energy from the UK.
However, three of the five most popular tariffs were still with the Big Six, with EDF’s Simply Fixed tariff topping the list as 15.75 per cent of customers switched to it.
Earl added: ‘EDF Energy took the top spot attracting more than a quarter of all new switches. Its Simply Fixed Feb21 tariff attracted nearly half of all those switches, making an average saving of £40.59.
‘There were some much larger savings available last month. Some households made an average saving of £228.16 by switching to Pure Planet’s 100 per cent Green tariff, proving the point that going green on your energy doesn’t have to cost the earth.
‘With 65 tariffs coming to an end in March, it is vital that those customers take the time to shop around and switch to a good deal.
‘If not, they will likely get rolled onto an uncompetitive and expensive standard or default tariff.
‘From 1 April, those customers stuck on these types of tariffs will be hit hard by the price cap rise, with all of the Big Six hiking prices within a pound of the £117 increase, millions will be left facing bigger bills.’
Despite smaller suppliers offering better deals, many customers are still worried about switching to one of these providers as they fear they are unreliable and could be stuck without protection if they go bust.
The fears steam from the high number of small suppliers who have ceased trading in recent times, including Extra Energy, Spark Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U, Usio Energy, One Select, Our Power, Economy Energy and Brilliant Energy.
However, Ofgem has assured customers they will be protected and their energy supply will continue should there be any trouble with their supplier.
Customers who feel they are being charged too much for their energy are encouraged to shop around to see how much they could save by switching provider.