Three quarters of energy switchers opting for small suppliers as customers spurn Big Six

15th May 2014

Almost three quarters of energy switchers are opting for smaller providers according to comparison website Gocompare.com.

Some 71% of people  who switched their energy tariffs over the last two months opted for a small provider, while just over a quarter (29%) chose a big six supplier*.

This follows a price war launched by several smaller providers recently that has seen them offer tariffs that come with attractive, and sometimes sub-£1,000 a year, dual fuel bills. Jeremy Cryer, energy spokesperson at Gocompare.com, said: “The UK’s smaller energy providers have begun to really challenge their larger competitors, resulting in a lot of people signing up to the highly competitive fixed tariffs they have launched in recent weeks.

“This is hardly surprising, especially when some providers have introduced tariffs where people could pay, on average, under £1,000 a year for their gas and electricity. Such low bills are a particularly attractive prospect against a backdrop of recent energy price rises and intervention by the government and the regulator.

“People are getting the message that the gas and electricity they get is largely the same irrespective of what company’s logo they see on their bills. All suppliers, large and small, are regulated by Ofgem and as such consumers are protected in the same way no matter who they buy their energy from.

“The main thing when shopping around for energy is to look for the tariff that represents the best value for money, not necessarily who is offering it. But also make sure that your needs will be met in terms of the way you prefer to manage your account, and look for any early exit fees or other charges.”

Top ten cheapest tariffs

Provider Tariff Annual cost
First Utility iSave Fixed v23 August 2015 £992
Extra Energy Fixed Price September 2015 £1,014
Ovo Energy Cheaper Energy Fixed £1,028
Green Star Energy No Worries 12 Months Fixed version 1405 paperless £1,034
EDF Energy Blue+ Price Promise August 2015 £1,049
First Utility iSave Fixed v21 September 2016 £1,070
Green Star Energy No Worries 24 Months Fixed version 1404 paperless £1,072
ScottishPower Online Fixed Price Energy July 2015 £1,076
Ovo Energy Greener Energy Fixed (Online) £1,086
Ovo Energy Better Energy Fixed £1,088

 

Based on dual fuel, payment by monthly direct debit, averaged across all UK regions and based on an annual energy usage of 13,500kWh gas and 3,200kWh electricity (medium user).

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