Consumers continue to ditch uncompetitive energy giants

Over the last six months, 71% of households that have switched energy provider have chosen deals from smaller ‘challenger’ brands, including Extra Energy, First Utility and Ovo Energy. Fewer than a third have taken up tariffs from the ‘big six’ – EDF Energy, ScottishPower, SSE, E.on, Npower, and British Gas.

Jeremy Cryer, energy spokesperson at Gocompare.com, said: “Consumers’ preference for smaller energy providers over the last six months comes as no surprise, particularly as the UK’s ‘big six’ suppliers have all failed to offer competitive tariffs during that time. If this continues, small energy providers are likely to benefit further from the consumer backlash against the energy giants.

“Currently, Extra Energy and First Utility are both offering combined gas and electricity tariffs with an average annual cost of less than £1,000. These deals, coupled with a growing realisation among consumers that small energy companies can be just as reliable as their big competitors, has clearly encouraged a lot of people to make the switch.

“At present, just two of the top ten cheapest duel fuel tariffs are offered by big six suppliers, namely ScottishPower and EDF Energy, coming in 9th and 10th respectively. Although customer service, flexible account management, low or no early exit fees, and reputation are all important considerations when choosing a supplier, while consumers continue to face expensive bills, price remains a big deciding factor. And because of this, for now, the small fish are causing big ripples on the pond.

“It’s important that people take an active interest in the management of their household outgoings to ensure they’re getting good value for their money. When comparing energy tariffs don’t focus on the brand, but instead try to establish whether or not you will get the service you want, at a good price.

“Be sure to shop around carefully, as the right provider and tariff for you will depend upon your specific details, including your energy consumption, address, and whether you are happy to manage your account online or prefer paper bills and phone support.”