CCPC research shows considerable savings to be made from switching
Consumers saved close to €300 by switching services like gas and electricity or broadband.
Earlier today, the Competition and Consumer Protection Commission (CCPC) released research examining the behaviours of consumers in relation to switching.
The research looked at 19 ‘everyday services’, including electricity, waste, gas, and financial services and the CCPC found that:
- 24% of consumers regularly change service providers often to avail of better rates;
- 46% only look around for other providers if they experience poor service or price; and
- 30% tend to stick to the same companies.
Less people are switching
The research found that less people has switched at least one service provider in the last 12 months, down 7% from 2015, to 41%.
Consumers are most likely to switch their motor insurance provider but least likely to switch their provider when it came to mortgages, savings/investments, and credit card providers.
Significant savings to be made
Those who did switch made savings averaging between €20 and €30 per month for every service they switched.
Some specific examples of savings made include an average of €287 a year on electricity supply, while those that switched broadband provider saved an annual average of €299.
Barriers to switching
Those that hadn’t switched services said they struggled to see the difference between offers or were not motivated to switch.
In addition, 34% of those surveyed said ‘hassle’ was a barrier to switching their personal current account.
People who had switched services in the last 12 months said that difficulties making price comparisons or not trusting the offers they did see were two of the reasons they didn’t switch more often.
”It is disappointing to see that the numbers switching are down”
Commenting on the research, Fergal O’Leary, Member of the CCPC, said, “While the research is positive in that many consumers are still actively looking for better value, it is disappointing to see that the numbers switching are down compared to the numbers found by CCPC research conducted in 2015.
“It is our belief that markets work best when consumers are able and willing to seek a better deal. Our research shows that there are significant savings to be made, even if consumers switch only one or two providers.
“The savings made by the consumers in our survey will hopefully be an incentive to others to try to make savings of their own.”
Switching is quick and easy
The average dual fuel customer can save up to €318 by switching from standard tariffs to the cheapest deals out there, so if you haven’t switched in more than a year, you could stand to make significant savings.