Millions of UK households are missing out on annual savings on their energy bills.
That’s according to new research from Utility Warehouse which suggests nearly a third of households have not switched energy providers for more than three years, despite rising living costs, as they perceive no significant differences between suppliers.
The study, conducted by Opinium among 3,000 UK billpayers, indicates a state of “switching inertia” in the UK as consumers grapple with soaring prices.
While 73% of households are concerned about potential increases in the cost of household services over the next 12 months, 55% believe there are no worthwhile energy deals available amid the current cost-of-living crisis.
Furthermore, 19% of respondents admit they haven’t switched their energy providers in over five years, with an additional 14% stating they have never switched at all.
Reasons cited for not switching energy providers include the complexity of the process (9%), worries about supply interruptions (7%), and the most common reason being the belief that all suppliers are essentially the same (20%).
Collectively, households that do not switch are missing out on average savings of more than £200 annually compared to those who do.
This trend could be costing the nation an estimated £2.5 billion or more each year due to the current levels of switching inertia.
Commenting on the research findings, Stuart Burnett, Co-Chief Executive Officer at Utility Warehouse, said: “In a tough economic environment, it’s worrying to see so many people missing out on meaningful savings on their bills.
“Significant apathy, complicated switching processes and the belief that all suppliers are essentially the same are major barriers to households getting a better deal.”
