Energy Switching Behaviour &

Attitudes

Survey powered by: HARRIS 24

A report by:

January 2017In conjunction with:

INTRODUCTION

Over the last few years efforts from Government and regulators have increased to try

and encourage UK consumers to engage more with their energy supply. There has

also been much more widespread coverage in the news and other media

Recently published figures suggest that 2016 was a record year for energy switching.

Energy UK said almost one million more people changed supplier last year, an increase

of 26 per cent on 2015.

In conjunction with Utility Week magazine, Harris Interactive launched a survey to a

nationally representative audience of just over 1,000 consumers to measure switching

behaviour and attitudes.

This report summarises the key findings from the research which will be the first of a

regular iteration conducted by Utility Week and Harris Interactive.

Key Findings

SWITCHING BEHAVIOUR

44%

46%

65%

38%

41%

27%

Gas

Electricity

Dual fuel

0% 10% 20% 30% 40% 50% 60% 70%

Not Switched

Switched

Switching amongst dual fuel customers is fairly strong, although there is still around a third of consumers that have never switched their energy supply.

Q .Have you ever switched your energy supplier for gas, electricity or both of these services? (Base: Dual Fuel – 692; Electricity – 297; Gas- 149)

RECENCY OF SWITCHING

9%6% 5%

17% 16% 14%

30%

24%

18%

13%

21% 20%

29%31%

38%

3% 3% 4%

0%

10%

20%

30%

40%

50%

Gas Electricity Dual Fuel

Less than 1 month ago Between 2-6 months ago Between 7-12 months ago

Between 1-2 years ago More than 2 years ago Cannot remember

Q .When did you last switch supplier? (Base: Dual fuel - 457; Electricity -198; Gas -139 )

For many, particularly those with dual fuel, the last switch was more than 2 years ago but there is a good proportion of gas and electricity switches within the last 12 months

FREQUENCY OF SWITCHING

58%50%

31%

24%24%

26%

9% 14%

20%

3%4%

6%

6% 9%16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gas Electricity Dual Fuel

Yes - it was the first timeNo - I had switched once beforeNo - I have switched twice beforeNo - I have switched three times before

A large proportion of switchers of gas and electricity are first time switchers, with serial switching more common amongst dual fuel customers

Q .Was this the first time you had switched either gas or electricity? (Base: Dual fuel - 457; Electricity -198; Gas -139 )

RECENCY OF SWITCHING

Of those that have switched within the last year, more than a third of all energy users stated that it was their first switch. Levels of recent first time switching are lower amongst dual fuel consumers.

Dual Fuel less than 1 year since switch

(n=170)

Electricity less than 1 year since switch

(n=90)

Gas less than1 year since switch

(n=77)

Energy total less than1 year since switch

(n=301)

Yes - it was the first time

22% 53% 65% 37%

No – I have switchedonce before

25% 24% 22% 25%

Q .Was this the first time you had switched either gas or electricity?

WHO ARE THEY SWITCHING TO?

74%80% 77%

22%17% 19%

4% 3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Gas Electricity Dual Fuel

Large Supplier Small / Mid Sized Don't Know

Large supplier defined as one of the “Big 6” i.e. either: British Gas, EDF, E.ON, npower, Scottish Power or SSE

The vast majority of those who have switched away from a large supplier have still switched to another large supplier

Q. When you last switched energy supplier did you switch from a large supplier? Is your electricity / gas currently provided by a large supplier?(Base: Dual fuel - 457; Electricity -198; Gas -139 )

EASE OF SWITCHING

49%

44%

6%

2%

Very easy andstraightforward

Fairly easy andstraighforward

Fairly complicated anddifficult

Very complicated anddifficult

0% 10% 20% 30% 40% 50% 60%

1st time switchers = 55%

2nd time switchers = 38%

Those who have switched have overwhelmingly found the process easy and straightforward and, interestingly, 1st time switchers are significantly more likely to have found it very easy than those switching for a 2nd time

Q. Which of the following best describes how you found the process of switching energy supplier the last time that you switched? (Base: 704)

THOUGHTS ON EASE

“Previous supplier kept blocking move”1st time switcher

“The supplier I was moving from would not communicate with my new supplier and was obstructive”1st time switcher

“It was a seamless change which only involved meter readings and a few phone calls and documents to sign. I was surprised how easy it was”

1st time switcher

Comments on ease show how important the old and new supplier’s roles are in the process

“New supplier took care of everything, I didn't have to get involved”1st time switcher

Q. Why did you find the process easy / difficult? (Base: 704)

SWITCHING WORRIES

33%

15%

25%

45%

1%0%

10%

20%

30%

40%

50%

Being double billed Having energy supply cut off Being worse off on new deal

None of these Other

Q. Did you worry about any of the following when you were last in the process of switching? (Base: 704)

A large proportion of switchers had no worries when they last switched but being double-billed and finding themselves worse off was a concern for some

SWITCHING MOTIVATIONS

76%

10%

4%

5%2% 3% Saving money

Getting better customerservice

Getting greener energy

Getting better energyefficiency advice

Cannot remember

Other, please specify

Q. What was your MAIN motivation for switching the last time that you switched? (Base: 704)

1st time switchers – 69%Switched more than 3 times – 88%

Saving money is overwhelmingly the main motivation for switching and probably as you would expect is even more the case for serial switchers

FUTURE SWITCHING PLANS

23%

16%

24%

37%

Yes – within the next year

Yes – within the next one to two years

No Don’t know

0%

10%

20%

30%

40%

1st time switchers = 33%

3+ switchers = 35%

Never switched = 11% Never switched = 36%

The majority of consumers are undecided about whether they will switch energy supplier in the future but 1st time switchers are significantly more likely to day within the next year. As you would expect, those who have never switched are less likely to in the future.

Q. Do you plan to switch energy supplier in the future? (Base: 1011)

SWITCHING CONFIDENCE

25%

34%

19%

16%

6%

Extremely confident

Very confident

Fairly confident

Not very confident

Not at all confident

0% 10% 20% 30% 40%

Non switchers

Top 2 Box = 40%

Bottom 2 Box = 30%

The vast majority of switchers are confident that they would know what to do when (next) switching supplier, although it is much lower for those who have never switched

Q. Which of the following best describes how you found the process of switching energy supplier the last time that you switched? (Base: 704)

THOUGHTS ON LOW CONFIDENCE

“I do not understand what is involved. The tariffs are not explained in language that is easily understood. The whole process is shrouded in supplier mystery meant to confuse.”

“They all promise the earth, but we read far too many stories about people who have changed and then found that the deal turned out to be not so good”

“I have many choices and don’t know what is the best supplier”

Comments from those with low confidence point to not having switched being a barrier as well as issues with existing suppliers and doubts over savings

“I haven't changed my supplier so don't know how to proceed exactly”

Q. Why did you find the process easy / difficult? (Base: 704)

“Given I have had billing problems with my supplier I am not convinced that there would be a simple, hassle-free process to move to a new supplier.”

Summary & Conclusions

SUMMARY & CONCLUSIONS

Although there is still a good proportion of consumers that have never switched their energy

supply, it would appear that the measures to encourage greater engagement amongst the general

public with their energy supply is paying off with over a third of energy switches in the last year

(37%) being from first time switchers

There has also been quite a bit of disruption in the market over the last few years with the

emergence of new energy suppliers but the research indicates that consumers are currently

reluctant to fully commit to these brands with over 75% of people stating that they switched to a

large supplier rather than a small or mid-sized supplier

It is no surprise that saving money is clearly the main motivation for those that have switched

(76%) but, although double-billing is a worry for a third (33%), the vast majority of the switchers

found the process relatively straightforward so continued promotion of how easy it is now to switch

supplier will hopefully overcome any concerns that consumers still have.

Methodology

METHODOLOGY & CONTACT DETAILS

For this study, we surveyed a carefully managed nationally representative sample of

over 1,000 UK respondents between 10th and 12th January

Harris Interactive is the agency to use when you need answers fast from the general

population. Using our Harris 24 solution,1000 –2000 interviews can be completed and

reported in less than 24 hours in the UK, US, France, Germany, Spain and Italy.

For further information about Harris24 please contact the author of this report:

Mark BrentonHead of Energy Research

mbrenton@harrisinteractive.co.uk07773 153983