ENECHANGE Survey Reveals 70% Feel Electricity Bills Soaring, Yet 60% Have Never Switched Providers

ENECHANGE Inc. (Headquarters: Minato-ku, Tokyo; CEO: Tomoya Maruoka; hereinafter 'ENECHANGE') conducted a 'Survey on Awareness of Home Electricity Switching Services' targeting 2,000 individuals in their 20s to 60s and older nationwide.

The survey results show that while 74.2% of people feel that electricity bills have risen, 56.4% have 'never switched' electricity providers. While 53.8% practice 'power saving' as a measure against high electricity bills, only 8.9% are 'considering changing electricity companies,' revealing that many households are not undertaking fundamental reviews. On the other hand, 50.3% of those who actually switched are satisfied, and 47.5% said the process was 'easier than imagined,' indicating a significant gap between the perception of hassle and reality. Furthermore, generational analysis reveals different reasons behind the lack of switching, showing that even 10 years after the full liberalization of the retail electricity market, the 'freedom to choose' is not being fully utilized. ENECHANGE is working towards a society where all generations can find an electricity plan that suits them through one of Japan's largest electricity and gas comparison services.

[Survey Summary]

Feeling of soaring electricity bills: 74.2% of all respondents feel that 'electricity bills have risen recently.' This tendency increases with age, reaching 80.2% among those in their 50s. Approximately 60% have never switched: Although awareness of full retail electricity liberalization reaches about 70%, 56.4% answered that they have 'never switched electricity companies in the past.' Reliance on power saving: While 53.8% practice 'power saving' as a measure against electricity costs, only 8.9% are 'considering changing electricity companies.' Generational gap: Priorities in choosing electricity differ significantly by generation, with those in their 20s and 30s valuing 'clarity of rate plans' and those over 60 valuing 'reliability and stable supply' (42.0%). Satisfaction of switchers: 50.3% of those who actually switched are 'satisfied,' and 47.5% said the procedure was 'easier than imagined.'

■ Over 70% feel electricity bills soaring, yet rely on power saving without fundamental review

The survey found that 74.2% of all respondents feel that 'electricity bills have risen recently,' a tendency that strengthens with age. 80.2% of those in their 50s and 78.9% of those over 60 feel the increase, suggesting a significant impact on the lives of middle-aged and elderly people.

Furthermore, dissatisfaction with current electricity bills reached 41.3% overall, with about half (48.9%) of those over 60 expressing dissatisfaction. In response to this situation, the most common measure to reduce electricity bills was 'power saving (adjusting air conditioning, turning off lights, etc.)' (53.8%). On the other hand, only 8.9% are 'considering changing electricity companies.' This highlights a situation where, despite daily conservation efforts, people are not moving towards the fundamental solution of 'reviewing their electricity plan.'

■ 'Knowing but not acting' – Even after time has passed since full retail liberalization, about 60% have never switched

The term 'electricity liberalization' itself is recognized by about 70% of all respondents ('understand well' 19.9%, 'know vaguely' 50.0%). However, when asked if they have 'ever voluntarily switched electricity companies,' 56.4% answered 'no (have always used the initial company).'

The top reasons for considering switching but not doing so were 'it became too much trouble' (35.8%), 'couldn't see the difference even after comparing' (33.4%), and 'couldn't find a trustworthy company' (22.5%). This indicates a 'cognition-action gap' where, despite knowing about the system, the difficulty of comparison and psychological hurdles to the procedure hinder action. Furthermore, among those who experienced a significant rise in electricity bills, only 3.7% 'thought about it and switched,' while 23.8% 'thought about it but did not switch.' This shows that many people cannot take the step to switch even with the direct trigger of soaring electricity bills.

■ Generational differences in 'values for choosing electricity' and 'reasons for not switching'

Clear differences were observed between generations regarding important factors when choosing an electricity company.

Younger generations in their 20s and 30s tend to prioritize 'clarity of rate plans (no hidden costs)' (20s: 27.2%, 30s: 31.8%), while those over 60 overwhelmingly prioritize 'reliability and stable supply' (42.0%). Among those in their 50s, 'low rates' is the highest at 41.8%, highlighting cost consciousness. There are also generational gaps in the reasons for not considering switching.

Generation: Important factors in choosing electricity; Main reasons for not considering switching
20s-30s: Clarity of rate plans (27-32%); Procedures are troublesome (13-17%), No dissatisfaction with current company (41-46%)
40s-50s: Low rates (31-42%); No dissatisfaction with current company (28-30%), Seems to have no merit (16-18%)
60s and over: Reliability and stable supply (42%); No dissatisfaction with current company (32%), Seems to have no merit (16%)

The most common reason across all generations is 'no dissatisfaction with / satisfied with current electricity company,' with 46.5% of those in their 20s and about 41% of those in their 30s citing this reason. This reveals a status quo bias where people feel 'there's no need to switch because there's no dissatisfaction.' On the other hand, as age increases, reasons based on cost consciousness, such as 'the benefits don't seem worth the effort' and 'the difference seems small,' tend to increase.

*Of the total 2,000 respondents, 38.1% (761) have switching experience, 56.4% (1,128) have no experience, and 5.5% (111) did not answer or were unclear.

■ Actually 'easier than imagined' – Over half of switchers satisfied

Although there is a high psychological hurdle to switching electricity providers, satisfaction among those who have actually switched (n=761*) is high, with 50.3% reporting satisfaction ('very satisfied' 10.5% + 'somewhat satisfied' 39.8%). Furthermore, when asked about the actual switching procedure, 47.5% felt the process went more smoothly than expected ('much easier than imagined' 13.9%, 'easier than imagined' 33.6%). This shows a discrepancy between the image of switching being 'troublesome' or 'difficult' and the actual experience.

*Of the total 2,000 respondents, 38.1% (761) have switching experience, 56.4% (1,128) have no experience, and 5.5% (111) did not answer or were unclear.

■ 10th Anniversary of Full Retail Electricity Liberalization – Has the 'Freedom to Choose' Reached Consumers?

Full retail liberalization of electricity began in April 2016, and 2026 marks its 10th anniversary. This system granted everyone the right to freely choose their electricity company, but this survey clearly reflects the 'achievements and challenges' of these 10 years.