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Energy customer switching is a concept stemming from the global energy markets. The concept refers to the action of one energy customer switching energy supplier, a switch is essentially seen as the free (by choice) movement of a customer. In addition to that a switch can include: * A re-switch: When a customer switches for the second or subsequent time. * A switch-back: When a customer switches back to his/her former or previous supplier. If a customer moves, there is often a switch, however this will only be counted if the customer is not dealing with the incumbent in the new area of residence. The above is the official definition of switching and is being used by public energy institutions such as CEER & ERGEG (forerunner to ACER). The definition was originally developed by Dr Philip E. Lewis, international switching expert. Switching is a key concept to understanding
competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, ind ...
-related issues on the global energy markets as the switching level of a concrete market reveals the state of the competition; High switching rates equals high level of competition and low switching rates equals limited competition. Thus measuring and assessing switching rates is necessary in order to have a correct impression of the energy markets. The action of switching is often done via a price comparison website or by the traditional
door-to-door Door-to-door is a canvassing technique that is generally used for sales, marketing, advertising, evangelism or campaigning, in which the person or persons walk from the door of one house to the door of another, trying to sell or advertise a ...
sales method, where a salesperson assists the customer in switching. This is a concept that has become particularly popular in countries such as the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
, Australia,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan ar ...
,
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = '' Plus ultra'' ( Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , ...
and
Germany Germany, officially the Federal Republic of Germany (FRG),, is a country in Central Europe. It is the most populous member state of the European Union. Germany lies between the Baltic and North Sea to the north and the Alps to the sou ...
, where large numbers of competitor brands operate.
Price comparison services A comparison shopping website, sometimes called a price comparison website, price analysis tool, comparison shopping agent, shopbot, aggregator or comparison shopping engine, is a vertical search engine that shoppers use to filter and compare produ ...
have crossed international borders by offering their services in multiple free markets. Popular brands such as
uSwitch Uswitch Limited is a UK-based price comparison service and switching website founded in 2000. The site allows consumers to compare prices for a range of energy, personal finance, insurance, and communications services. History uSwitch.com wa ...
,
MoneySupermarket Moneysupermarket.com Group PLC is a British price comparison website-based business specialising in financial services. The website enables consumers to compare prices on a range of products, including energy, car insurance, home insurance, tra ...
, Utility Switchboard and
Go Compare Go.Compare (formerly GoCompare.com) is a British financial services comparison company based in Newport, Wales. Its website provides comparison details for financial products including car insurance, home and pet insurance and breakdown cover. ...
have contributed considerably to a change in user behaviour, leading customers to always compare before making a purchase directly through a provider.


References

{{reflist * Utility Customer Switching Research Project: http://www.utilitycustomerswitching.eu Energy