Switching activity jumps among energy customers ahead of winter months

Regulator found there was a 51% jump in switching among electricity customers and a 32% increase in switching among gas customers in July compared to the same period a year earlier

Bord Gáis Energy reported the highest monthly customer losses by a gas supplier in the Republic at the same time, as almost 3,000 customers switched to another provider.

Customers increased switching activity among energy providers ahead of the looming winter months as cost pressures linger for some households despite stabilising prices, a report suggested.

In its Customer Switching Report, the Commission for Regulation of Utilities (CRU) found there was a 51% jump in switching among electricity customers and a 32% increase in switching among gas customers in July compared to the same period a year earlier.

In monthly terms, Electric Ireland reported the highest number of customers lost due to switching activity, with more than 12,200 of its electricity users moving elsewhere in July. However, Electric Ireland has a dominant share of the electricity market in the Republic.

Bord Gáis Energy reported the highest electricity customer gains in the same period, with more than 8,300 users joining the utility provider.

However, Bord Gáis Energy reported the highest monthly customer losses by a gas supplier in the Republic at the same time, as almost 3,000 customers switched to another provider. Bord Gáis has a significant share of the gas supplier market.

Electric Ireland reported the highest customer gains in July, with more than 3,600 customers entering contracts with the firm that month.

Switching savings

CRU data showed active customers who switched supplier or renegotiated with their current supplier each year for the last two years could have saved €385 on gas, €663 on electricity or €1,261 on their dual fuel costs.

 The total number of customers switching electricity provider was 34,791 in July, while the total number of customers switching gas provider was 10,575.

Gas and electricity prices have largely stabilised since they surged following Russia's invasion of Ukraine in 2022, disrupting the market. 

Meanwhile, European natural gas futures dropped below €35 per megawatt-hour, the lowest in seven weeks, due to warmer weather forecasts and reduced supply disruptions.

European storage sites are 93% full, providing a buffer against potential winter disruptions.

Elsewhere, Brent crude oil futures fluctuated around $73.8 per barrel on Thursday, attempting to recover losses from the previous session as markets assessed potential supply disruptions amid rising tensions in the Middle East.

The US financial regulator cut interest rates by a bumper 50 basis points earlier this week which is likely to boost economic activity and oil demand.

Drivers could eventually see Brent crude prices trickle down into the forecourt pumps.