New research by UK energy regulator Ofgem has revealed that a vast price gap has opened up between those UK suppliers that have announced or implemented price cuts and the two smallest suppliers, which are yet to make any such announcement.
The regulator’s research showed that UK consumers switched their energy supplier at the highest rate in four years in 2006, with over four million making a move. Ofgem added that this trend is increasing, with over 100,000 more consumers switching suppliers in January and February 2007 than in 2006.
The regulator revealed, however, that the increased competition within the UK energy sector has opened up a vast price gap that leaves customers of EDF Energy and ScottishPower paying over GBP100 for remaining loyal.
Ofgem said that EDF Energy dual fuel customers could save up to GBP140 by changing to the cheapest supplier, while ScottishPower customers could save up to GBP122 (excluding customers on a fixed price tariff).
Ofgem chief executive Alistair Buchanan said: Competition is all about customer power; in a market where over 600,000 customers switched in the first two months of this year, any supplier that tries to buck the market by not lowering their prices or failing on service risks an exodus of customers.
Ofgem also revealed that UK consumers could save money by sourcing their gas and electricity from the same supplier, and that paying utility bills by Direct Debit rather than check could also save customers GBP35 to GBP40 a year.