Despite Rising Utilities Most Brits will not Switch Providers

Although gas and electricity bills are rapidly rising, at least a third of customers, according to recent research, said that it was not worth the hassle to switch energy providers. Run by market research group, Mintel, the study indicates that switching electricity suppliers is too much of an inconvenience and that 32 percent of UK residents would not bother to swap, even if it meant they would save money.

Last year, according to the statistics, nearly a quarter of UK households changed their service provider for energy, but at least one in seven customers said that no real savings were incurred by switching their energy supplier. Among those that did switch service providers last year, one in five only switched because their new energy supplier had made initial contact with them personally. Only 14 percent used an online comparison tool to find better savings in their area.

Although consumers are ready to improve energy consumption and efficiency, not many are keen to make a switch in actual utility provider. A third of energy consumers have taken energy efficiency into their own hands having things such as home insulation installed. 30 percent polled announced that they would like to have a utility which only used renewable energy, but that they would not pay more for the clean electricity.

Mintel’s senior retail analyst, Richard Caines, said that in light of the survey results marketing for the utilities should incorporate products which will increase energy value and services that are provided to increase energy efficiency from the home, such as insulation installation.

Last month, E.ON spearheaded winter price competitions by offering a WinterGas programme which promises that E.ON customers will have the cheapest bills for this winter. The German utility giant also launched a campaign to run throughout the UK promoting debates over green issues.

Furthermore, yesterday, EDF’s controversial Green Britain Day ads were approved by the ASA as not being mislead, despite almost 150 complaints to the contrary against the French utility giant. EDF Energy’s ads will now air in televised segments promoting green issues and alternative energies using images for the upcoming Olympics in London for 2012.