Energy supplier switching surged in February as households rushed to find better deals ahead of Ofgem’s latest price cap hike.
New data from ElectraLink shows 270,000 customers switched suppliers last month – a 25% jump on February 2024 and 7% more than January.
The rise came as Ofgem prepared to announce that the energy price cap would increase by more than 6% in April, pushing the average household bill up to £1,849 a year.
Crucially, the surge was almost entirely driven by domestic customers, with businesses showing little movement.
Households accounted for 90% of all switches, while small businesses made up just under 9%. Industrial and commercial users represented less than 2% of the total.
Switching usually picks up in the early months of the year, peaking in April when many energy contracts come up for renewal. But with bills set to rise again, February saw consumers moving early in search of cheaper tariffs.
Higher wholesale costs are behind the latest price hike – but with market competition increasing, many households are taking action to lock in better rates before the cap changes in April.
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