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Nearly 1.5 million gas customers and over 2 million electricity customers likely to switch providers

Source: Roy Morgan Single Source (Australia), 12 months to December 2017, n = 50,139; 12 months to December 2018, n = 50,853.
Over the next 12 months, 1.46 million gas customers say that they will be very or fairly likely to switch providers. This represents 9.9% of those with gas connected and is a marginal increase from 9.7% 12 months ago. It is a similar situation with electricity, where 2.07 million say that they are likely to switch, representing 10.2% of those connected to electricity, up a little from 10.1% 12 months ago.

These are some of the latest findings collected in the 12 months to December 2018 from Roy Morgan’s Single Source survey, which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including details from over 9,500 gas consumers and over 14,500 with electricity.

Aurora Energy, Ergon Energy and ActewAGL have the most loyal electricity customers


The electricity provider with the lowest proportion of customers saying that they would be likely to switch is Aurora Energy with only 1.7%, placing it well below the industry average of 10.2%. Other strong performers that are well below the average are Ergon Energy (2.7%), ActewAGL (3.2%) and Synergy (5.7%).

The two biggest players in this market did not rate well when it comes to likelihood of switching with Origin Energy scoring 12.3% and AGL 12.7%. The worst two performers were Alinta (14.7%) and Energy Australia (14.2%).

The following chart shows that the biggest improvers over the last 12 months in terms of a reduction in the likelihood of switching were ActewAGL (down 4.2% points), Lumo Energy (down 2.6% points) and Ergon Energy (down 2.2% points).

Likely1 to Switch Electricity Provider in the Next 12 Months - 11 Largest Electricity Providers2


Source: Roy Morgan Single Source (Australia), 12 months to December 2017, n = 50,139; 12 months to December 2018, n = 50,853.
Base: Australians 14+ with electricity connected, 12 months to December 2017, n = 14,609; 12 months to December 2018, n = 14,806. 1 Very or Fairly Likely to switch. 2 Based on customer numbers.  3Includes brands not shown and can't say brand.


The gas customers least likely to switch are with ActewAGL, Elgas and Kleenheat

ActewAGL is the best performer when it comes to having the lowest proportion of its gas customers being likely switch, with only 5.1%, well below the market average of 9.9%.  They were followed by Elgas (7.6%) and Kleenheat (7.7%). The highest level of likely switchers was for Energy Australia with 14.6%, followed by Red Energy (13.8%) and Origin Energy (13.3%).

The biggest improvers over the last 12 months were Lumo Energy (down 9.9% points) and Kleenheat (down 1.8% points), while Origin Energy (up 1.5% points) and Energy Australia (up 0.9% points) showed small declines in their performance.

Likely1 to Switch Gas Provider in the Next 12 Months - 10 Largest Gas Providers2


Source: Roy Morgan Single Source (Australia), 12 months to December 2017, n = 50,139; 12 months to December 2018, n = 50,853.
Base: Australians 14+ with gas connected. 12 months to December 2017, n = 9,799; 12 months to December 2018, n = 9,979.  1 Very or fairly likely to switch. 2 Based on customer numbers.  3 Includes brands not shown and can't say brand.


Norman Morris, Industry Communications Director, Roy Morgan, says:

“This research has highlighted the need in this highly competitive consumer energy market to retain existing customers rather than too much focus on acquiring new ones. The large number of gas and electricity customers that are even considering moving is currently around three and a half million, representing both a major risk and opportunity for gas and electric retailers. Understanding the profile of the people who are considering moving is critical to retention and acquisition and Roy Morgan data is valuable in the further analysis of this group.

“We have seen for example, how satisfaction with energy retailers has a direct impact on switching intentions, including the fact that when customers become dissatisfied, nearly half consider they are likely to switch, compared to only around 5% for very satisfied customers.

“The retail market for both electricity and gas is currently operating in a continual negative news environment covering issues such as price increases, shortages, reliability of supply, renewables, global warming, confusion over pricing comparisons and a general lack of confidence in the long term solutions and direction governments are taking. It is important to note that although this industry is operating in a difficult and uncertain environment, the fact that there are big differences among the major players in terms of customer switching intentions, shows that there are lessons to be learnt from the better performers.

“The data used here is only a small part of the extensive and long term data we have on energy and other utilities. To find out more, ask Roy Morgan.

For comments or more information please contact:
Norman Morris, Industry Communications Director
Office: +61 (03) 9224 5172
Norman.Morris@roymorgan.com