Credit, Collections & Insolvency News
One in five (20%) energy customers, equivalent to 5.5 million households, have been put off switching to a new supplier following the collapse of 14 energy suppliers since the start of 2018, according to new research by comparethemarket.com.
More than one million customers have been affected by a failed energy supplier since the start of 2018. As a result, one in eight (13%) customers will now only switch to larger and better-known providers, while 7% have elected not to move to a smaller energy supplier.
The number of customers put off switching jumps to nearly one in four energy customers in the West Midlands (24%) and the North East (24%).
2018-19: a calendar of collapsed companies
| Date | Supplier | Customer numbers |
| Jan-18 | Future Energy | 10,000 domestic customers |
| Jul-18 | Iresa | 100,000 domestic customers |
| Sep-18 | Gen4u | 500 domestic customers |
| Oct-18 | Usio Energy | 7,000 domestic customers |
| Nov-18 | Extra Energy | 108,000 domestic customers |
| Nov-18 | Spark Energy Supply Limited | 290,000 domestic customers |
| Dec-18 | OneSelect | 36,000 domestic customers |
| Jan-19 | Economy Energy | 235,000 domestic customers |
| Jan-19 | Our Power | 38,000 domestic customers |
| Mar-19 | Brilliant Energy | 17,000 domestic customers |
| Aug-19 | Cardiff Energy Supply | 800 domestic customers |
| Aug-19 | Solarplicity | 7,500 domestic customers |
| Sep-19 | Eversmart | 29,000 domestic customers |
| Oct-19 | Toto Energy | 134,000 domestic customers |
According to research by comparethemarket.com engagement in switching is relatively low in the energy market. One in four (25%) customers have never switched supplier and a further 21% last switched supplier more than three years ago.
Data from comparethemarket.com shows the potential impact supplier collapses is having on switches to small and medium sized energy providers. In the past three months the number of switches through the website to larger suppliers has overtaken switches to smaller suppliers.
Peter Earl, Head of Energy at comparethemarket.com, said: “It is hardly surprising that the catalogue of supplier collapses in the past two years is having a negative impact on people’s decisions when it comes to choosing an energy supplier. Engagement in switching is already low despite the considerable savings that can be made by changing supplier regularly, with the roll call of supplier failures further fuelling inertia.”
“Proposals outlined by the regulator to implement new financial checks and tests for existing energy providers should be fast-tracked to prevent the stain of supplier collapses on the industry becoming a permanent fixture. Consumer confidence is already damaged, but action is required now to reassure energy customers in 2020 and beyond that the issue of supplier collapses is being treated with the seriousness it deserves.”