More than half of consumers report no financial benefit from switching energy suppliers

New research shows

More than half (58 per cent) of consumers report that they noticed no significant financial benefits after switching their supplier in an attempt to save on their bills.

The research, by customer contact centre specialist Echo Managed Services, comes after it was reported that 5.5 million consumers switched their energy provider in 2017 in an attempt to save on energy bills – a 15 per cent increase on 2016.

Echo also found that one in seven adults in the UK class themselves as ‘switching sceptics’ and do not believe that switching accounts for everyday service providers, such as for utilities or insurance, makes any lasting difference.

Similarly, only 19 per cent reported improved service from the new provider and only a quarter said that they were actually happier having made a switch.

The report, which examined people’s experiences across a range of services (including energy, insurance, phone, subscription TV, credit cards, phone and broadband providers), found that 34 per cent of UK consumers regularly switch providers. The energy sector experiences the most switchers (38 per cent of consumers switched in the last 12 months) and credit cards the least switchers (just 1 in 7).

Commenting on the findings, Chris Cullen, head of sales and marketing at Echo Managed Services, said: “These results make interesting reading following on from today’s news that more of us are switching our energy provider than ever before. It reinforces the suspicion that many ‘switching sceptics’ have –  that what at first seems like a better deal rarely turns out to have long-lasting benefits.”

Money remains the number one motivation to switch, however it seems that we expect big rewards to make it worth our while. Nearly a fifth (17 per cent) would only switch if they had time or there was a pressing reason to do so.

Chris added: “With the expectation of big savings being fuelled by price comparison site advertising, it’s not surprising that the relatively meagre returns are causing a rise in scepticism. 

“It should create an incentive for providers to fight harder to keep hold of their customers, using better service, transparent pricing and extra perks and benefits to encourage customers to see the long-term value in loyalty.”