The Energy Advice Line has welcomed the findings of a top-level probe that has found consumers can save around £200 a year by switching energy supplier.
But Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said it was crucial for the government to work out why some consumers were failing to switch, thereby losing out on savings.
An analysis of energy bills by the Department of Energy & Climate Change’s (DECC) Domestic Fuel Enquiry has found that 13.5 million households in the UK are losing out on a total of £2.7 billion by staying loyal to their supplier.
The figures were revealed as part of the Government’s Power to Switch Campaign to encourage the public to change suppliers.
“We welcome the Government’s advice for all consumers to switch suppliers regularly,” Mr Morgan said.
“These official figures support what we have been saying for a long time – that households and small firms have the potential to save significant amounts of money by changing suppliers. Staying loyal will only cost them more.
“It only takes a few minutes to switch if you use a reliable and independent price comparison and witching service like the Energy Advice Line, and you could end up saving £200 or even more.
“To put it bluntly, you’re throwing money away by sticking with the same supplier year on year.”
Launching the Power to Switch Campaign, Energy and Climate Change Secretary Ed Davey said “the power was in the people’s hands” to save money.
Mr Morgan said that consumers who stayed with the same supplier on a standard variable tariff were paying too much.
“It’ important for consumers that realise that even though energy prices are lower than they have been for years, you will only benefit if you seek out the best deal,” Mr Morgan said.
“In addition, the more people switch from expensive standard tariffs to cheaper deals, the harder suppliers will have to work to retain customers and that will pay dividends for everyone.”
Mr Morgan said he looked forward to the findings of the Competition and Markets Authority enquiry into the UK energy market. As part of the probe, the CMA will investigating why so many consumers are failing to engage with the market and switch supplier.
The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.
The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.
For further information visit www.energyadviceline.org.uk