Understanding Supplier Switching Trends in Nordic Countries

Switching suppliers for electricity is a common practice across all Nordic countries, driven by various factors. Recent data sheds light on the primary drivers and rates of switching in Norway, Finland, Sweden, and Denmark.

In Norway, the top drivers for switching suppliers are saving money (56%), followed by a change in life situation (18%), and better non-price terms (18%). This aligns with the high annual switching rate of 22%, indicating a dynamic market where consumers actively seek better deals. Furthermore, 73% find it easy to switch suppliers, and 85% actively compare contracts, highlighting a consumer base that is proactive in managing their energy expenses.

Meanwhile, in Finland, the expiration of previous contracts is the leading driver (43%), followed closely by saving money (39%). With a 16% annual switching rate, Finnish consumers demonstrate a slightly lower propensity to switch compared to their Norwegian counterparts. However, 69% find it easy to switch, and 88% actively compare contracts, indicating a market where consumers are still engaged in seeking better options.

In Sweden, the expiration of previous contracts (36%) and saving money (31%) are the primary drivers of supplier switching. With a 15% annual switching rate, Swedish consumers exhibit a moderate level of activity in this regard. However, only 51% find it easy to switch, indicating potential barriers to entry or consumer inertia. Nonetheless, 81% actively compare contracts, suggesting a willingness to explore alternatives.

In Denmark, saving money (48%) is the dominant driver for switching, followed by a desire for a green contract (16%). The relatively lower annual switching rate of 9% suggests a less volatile market compared to other Nordic countries. However, with 56% finding it easy to switch and 63% actively comparing contracts, Danish consumers still display an inclination towards seeking cost-effective and environmentally friendly energy solutions.

Continuous improvements in your customer journeys is vital to beat the competition in a dynamic market space. UtilityCloud provide the insights and data your organization need to understand your customers, win new segments and reduce churn.

Understanding these trends can also inform energy providers and policymakers in shaping policies and services that cater to consumer preferences and promote a competitive energy market across the Nordic region.


Source: Thema Consulting Group & Itera on behalf of UtilityCloud