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Highlights
- Record low number of customers switched to a new energy supplier in January amid the skyrocketing gas prices.
- Ofgem is all set to raise the energy price cap by 54% in April, which would raise the average household bills by approximately £700 per year.
Skyrocketing gas prices have demotivated the customers to switch to new energy suppliers, as the incentive to shop around is no longer there. According to trade body Energy UK, there has been a reduction of 73% in the number of customers that shifted to a new supplier in January. Since 2013, when the collection of this data began, this is the lowest number of switches that has been reported, with just 94,428 customers switching as there was no point of shifting in new suppliers.
Amid the surging energy prices, the best available deal for customers is to stick to the Ofgem-capped default rate of their existing suppliers. According to Energy UK, over 60% of the switches were made from one big energy supplier to another big rival, with no competitive deals on the table due to soaring gas prices. Ofgem is all set to raise the energy price cap by 54% in April, which would further worsen the ongoing crisis and raise the average bills of households by approximately £700 per year.
Let’s take a look at 5 UK energy suppliers which may be impacted by rising prices.
RELATED READ: Centrica, National Grid, SSE: Are these energy utility stocks a good buy?
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Centrica PLC (LON: CNA)
The current market cap of the FTSE250-listed firm, Centrica plc, stands at £4,559.33 million. It has provided a return of 49.32% to its shareholders over the last one year as of 18 February. Centrica plc’s shares were trading at GBX 78.78, up by 1.63%, at 1:19 PM (GMT) on 18 February 2022.
Drax Group Plc (LON: DRX)
The current market cap of the FTSE250-listed firm, Drax Group plc, stands at £2,453.25 million. It has provided a return of 60.65% to its shareholders over the last one year as of 18 February. Drax Group plc’s shares were trading at GBX 619.50, up by 0.81%, at 1:27 PM (GMT) on 17 February 2022.
National Grid plc (LON: NG.)
The current market cap of the FTSE100-listed firm, National Grid plc, stands at £39,314.01 million. It has provided a return of 26.21% to its shareholders over the last one year as of 18 February. National Grid plc’s shares were trading at GBX 1,091.20, up by 1.17%, at 1:22 PM (GMT) on 17 February 2022.
RELATED READ: Should you buy these 5 FTSE growth stocks with almost 100% return?
SSE PLC (LON: SSE)
The current market cap of the FTSE100-listed firm, SSE PLC, stands at £17,112.37 million. It has provided a return of 14.04% to its shareholders over the last one year as of 18 February, while its year-to-date return stands at -0.17%. SSE PLC’s shares were trading at GBX 1,628.00, up by 1.40%, at 1:25 PM (GMT) on 17 February 2022.
ContourGlobal PLC (LON: GLO)
The current market cap of the FTSE250-listed firm, ContourGlobal plc, stands at £1,205.99 million. The company’s shares have depreciated in recent times, and it has given a negative return of -11.57% to its shareholders in the last one year. ContourGlobal plc’s shares were trading at GBX 182.60, down by 0.65%, at 1:31 PM (GMT) on 17 February 2022.
