Ofgem targets more competitive retail market, post-price cap

Of the 1.1mn energy customers to take part in Ofgem’s engagement trials, 94,000 switched to better deals and realised savings of around £21.3mn.

It published a report on 27 September, summarising the results of its research into the best ways to help disengaged customers to make better choices about their energy. Between 2016 and 2019, it has conducted trials into categories such as “Better Off Trials”, “Collective Switch” and other interventions, finding that simple communications can prompt switching – though some prompts are more effective than others.

Of those to take part in its latest collective switch trial, 30% of the 90,000 disengaged customers taking part changed their energy deal. This was almost seven times higher than the 4.5% switching rate for customers who had received no extra information. Those who switched saved an average of £263.

The regulator has also announced it will not progress with the development of the Energy Customer Database. After a review, it found the default tariff cap was enough to protect disengaged customers against the detriment they face on poor value default tariffs. Instead, it will focus on ensuring the market works more effectively upon the lifting of the current price cap. The results from the engagement trials will inform this work.

Ofgem