Research company Datamonitor reports that increasing numbers of customers are switching energy suppliers via the Internet. Conventional wisdom suggests this is devaluing to energy suppliers, because it results in the lowest price supplier winning the most custom. Rising energy prices are making switching web sites more relevant, and Datamonitor suggests that suppliers should adapt their marketing efforts to compete in this market.
Energy supply markets have always been characterised by apathetic consumers who are reactive rather than proactive – but those customers switching online are being proactive, in that they are deliberately looking for a lower price.
Customers that have never switched are now a lower proportion of the market than those that have signed up to an in-area dual fuel deal (the greatest proportion of customers). Datamonitor estimates that less than 5% of switches are completed online – some 200,000 customers – but notes that as energy prices continue to rise, this number is likely to increase.