Energy switching reaches six-year high says Ofgem

The rate of customers switching energy suppliers rose to a six-year high in 2016, regulator Ofgem said.

It said 7.7 million switches took place last year, up by 1.7 million or 28% on 2015, as customers shopped around for better deals.

The figures come as customers face a spate of bill hikes, with standard tariff increases announced by Npower, Scottish Power and EDF (Paris: FR0010242511 - news) , though the biggest supplier, British Gas, has left prices on hold until the summer.

Britain's energy market has come under intense political scrutiny over claims hard-pressed households are paying too much and that competition between suppliers is not working.

Ofgem has encouraged switching, advising consumers that they can typically save around £230 by shopping around and warning that standard variable tariffs usually cost more than fixed price deals.

Its latest figures showed the switching level at around 15.8% of gas and electricity customers, the highest since 2010.

Of these, 47% were to small or medium suppliers outside the Big Six of British Gas, SSE (LSE: SSE.L - news) , Npower, EDF, Eon (Taiwan OTC: 3411.TWO - news) and Scottish Power.

However, Ofgem said two-thirds of customers remain on standard variable tariffs.

Ofgem chief executive Dermot Nolan said: "This welcome increase in switching should serve as a warning to supply companies.

"If they fail to keep prices under control or do not provide a good service, they risk being punished as customers vote with their feet."

Earlier this month, Ofgem announced a temporary cap on pre-payment meter prices that it said would save four million households around £80 a year.