The energy regulator Ofgem have published figures showing a significant increase in people switching energy supplier.

In March 2006 900,000 customers switched to an alternative supplier. This was an increase of about 200,000 on the usual monthly figure and the highest number for 4 years.

The increasing wholesale cost of energy is blamed for gas and electricity price rises of more than 40% in the last 2 years. Alistair Buchanan, the Chief Executive of Ofgem, explained that as customers have the freedom to shop around they can benefit from the more competitive market. Ofgem have suggested that customers who have so far stayed with one supplier could save £110 a year if they opt to switch now.

The Energy Retailers Association believe the figures reflect a healthy competition in the energy market and therefore should be welcomed.

However Energywatch takes a different view. The consumer group pointed out that 5 of the 6 largest energy suppliers in the UK increased their prices in March, so it was not a good month for consumers. With such widespread price rises switching suppliers is not the answer. The Director of Campaigns at Energywatch, Adam Scorer, would like the Government's energy review to look at some of the more fundamental issues and work out a longer term solution.

More recently energy suppliers have seen the light at the end of tunnel and expect to be able to reduce prices shortly. Some have even resorted to contacting their customers to let them know about planned reductions now, to try and slow their customer churn.

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