Energy switchers on the rise

LONDON - A growing number of people are switching energy supplier but others are still missing out on potential cost savings, the industry regulator says.

Ofgem said 2.8 million households changed their electricity supplier in the first seven months of 2007 and 2.3 million switched gas provider.

That was up from 2.6 million and 2.2 million during the same period last year.

The regulator said anyone who had not yet switched supplier could save money by doing so.

Average annual savings come in at 60 pounds for agreeing to pay by direct debit, 86 pounds for those on a standard credit contract and can be as high as 170 pounds for those with pre-payment meters.

Energy providers have cut their residential tariffs this year as lower wholesale prices are passed on to consumers.

The move follows a surge in the cost of gas and electricity. Power and gas prices soared in 2005 and early last year as tighter gas supplies and rising oil prices spooked the markets, pushing up customer energy costs.

However, wholesale prices have fallen since new gas import pipelines from Norway and the Netherlands opened in the latter half of 2006.

But Alistair Buchanan, chief executive of Ofgem, said: "With 2.8 million households switching in the first half of the year, the heat is still on suppliers to offer customers the best deal for their energy.

"With winter drawing in and all suppliers having lowered their prices, now is a good time for all customers to check whether they are getting a good deal for their energy."