LONDON (Alliance News) – Trade association Energy UK said that smaller energy providers made a net gain of over 163,000 customers from the “Big Six” energy suppliers in September, higher than both the previous month and the same month last year.
The Big Six suppliers in the UK, British Gas owner Centrica PLC, Scottish Power owner Iberdrola SA, npower owner Innogy SE, E.On SE, and EDF Energy SE have been under pressure from smaller rivals taking customers from them.
Small and mid-tier suppliers gained 163,274 net customers in September. This is equivalent to 30% of all switches in the month, up from a 25% net gain in August.
214,735 customers shifted from larger suppliers to smaller rivals in September, up from 162,382 in August. In contrast, only 51,461 customers shifted from smaller energy firms to their larger rivals in September, a little higher than 50,450 in August.
The same time the year before the smaller energy suppliers made a net customer gain over the Big Six suppliers of just 71,644.
In total, over 550,000 customers switched their energy supplier.
“The energy market is rapidly transforming as competition continues to flourish and the numbers of consumers engaging in the energy market continues to grow”, Energy UK Chief Executive Officer Lawrence Slade said. “Over half a million consumers switching suppliers in the space of a month, shows the scale of the growing momentum.”
In a tough month for listed energy suppliers, on Thursday the UK government published a draft bill regarding a price cap for energy bills for those on standard variable tariffs and other default tariffs in England, Wales and Scotland.
The UK Department for Business, Energy & Industrial Strategy requires Ofgem, the UK energy industry regulator, to consult and impose the cap “as soon as practicable after the legislation is passed.”
By Ahren Lester; [email protected]
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