With the energy price cap rising exorbitantly and widespread bill hikes all over the country, it has become important to switch energy suppliers. However, despite the skyrocketing prices, people seem reluctant to switch their energy suppliers. At least 1 in 3 people feel they do not really know enough to switch energy suppliers, and others think it is too much of a hassle to do so. According to shocking statistics, about 80% people in the country have not yet switched their suppliers – this means they are missing out on saving around £400 on energy a year!
If you are one of the people who stand to benefit from switching their energy suppliers, then we at Reddbox want to help clear out certain myths surrounding energy switching.
Here are some of the reasons why people may not want to switch their supplier:
1. It is unfamiliar territory
Granted, that switching energy suppliers can seem overwhelming and out of your comfort zone. There are too many options out there (over 400 tariffs), and it can be daunting to choose from among them. Moreover, for people in the lower income groups struggling to survive, switching their energy supplier is just not a priority- they may think they have far more important things to consider.
2. Brand loyalty
Surprisingly, customer loyalty also plays a role in preventing people from switching their supplier. People are more inclined to continue with the services of the supplier they already have and recognise. According to recent studies, about 30% consumers think they wouldn’t want to switch to a supplier they hadn’t heard of before, even if they charge more tariff. This is because they believe they wouldn’t receive the same level of service if they switch to a different supplier.
3. Suspicions about switching
There is a certain level of mistrust that can also prevent people from opting for energy switches. They may think it is too difficult or complicated, or even tedious and time-consuming. This could be because when energy companies were first privatised, the process of switching faced some difficulties- so many people are not yet aware that it is now an easy process to switch their energy suppliers and does not take much time.
4. Concern about exit fee
Many people think they will be charged a high exit fee if they leave their current energy supplier. However, they may not know that because of the Ofgem regulations, their supplier cannot charge them exit fees if they switch within 49 days of the end of their current tariff.
5. Worry about disruption in supply
People may also be reluctant to switch because they worry that their energy supply will be disrupted. Although it is a valid concern, in reality, when you switch suppliers, your current energy company will transfer you across to the new supplier on an immediate basis. So, there will be no disruption in supply when you switch suppliers.
What can be done about it?
We understand that energy switching is a newer process that not many people are familiar with. Hence, making people aware of the benefits is the first step, and then one can move forward from there. Trust building is also important. Supporting people through the process of energy switching can help make it less overwhelming. It is necessary to empower people to take charge of their finances and make informed decisions. Giving practical advice on conserving energy and sharing personal experiences is helpful too.
Reddbox plans to do exactly that. We aim to organise your energy and property needs in a single platform, including spreading awareness and helping you to switch energy suppliers. You can know more about switching your energy supplier and close the tariff gap in our blog section. Happy switching!