Over one million homes are set to ditch the big name providers in 2015 and move to smaller suppliers in an energy exodus, according to analysis by Yours Energy Switching partner energyhelpline.
Energy giant exodus
Last year the Big Six - which includes British Gas, Scottish Power and npower - lost around 1.5 million homes, with two thirds of switchers going to the small suppliers. This year the big names have fought back and they now have just over half (54 per cent) of the switching market, but still 46 per cent of price comparison switchers are opting for small suppliers, meaning over one million losses. From the beginning of 2012 to the end of this year energyhelpline.com estimates 3.3 million homes will have left the Big Six in the biggest energy giant exodus the UK energy industry has ever seen.
Nine out of the top 10 cheapest tariffs come from the small upstarts
This exodus is hardly surprising when consumers can choose between high prices from the Big Six or cheaper tariffs from the small upstarts. In fact, nine of the top 10 cheapest tariffs now come from small suppliers. Two of the cheapest deals were launched at the end of August by first:utility and extra energy. Both tariffs can save a typical customer over £200 a year when compared to the average Big Six standard deals many households will be on.
Big players not playing fair
Recently the Big Six have been heavily criticised in the media for not fairly reflecting wholesale price reductions into their rates. Whilst British Gas’s five per cent price cut came into effect recently, other suppliers have failed to follow. The five per cent gas price reduction British Gas implemented is also a drop in the ocean compared to the wholesale gas price drop of 29 per cent this year. Bills could be reduced a lot further still to reach a rate that’s fair for the customer. Thankfully, the smaller suppliers who are battling for business are offering a better rate to households.
“Often the cheapest tariff isn’t with the big name suppliers, but with much smaller players that many customers may not be aware of. This highlights the need to shop around for a great deal," said Matt Ridout from energyhelpline.com.
- Check out the UK's cheapest tariffs below. See how much you can save by switching providers here.