With so much competition in the energy market now, if you’re searching for a cheaper deal there’s no doubt going to be some suppliers you’ve not come across before. Whether they’re new green-only suppliers, localized energy suppliers or just new start-ups, there’s more competition than ever in the UK gas and electricity market and that means a lot of new players in the game. So how can you be sure these new faces are as good as the old guard?
First, let’s establish who we’re talking about when we mention the ‘Big Six’:
- British Gas
- Scottish Power
They’re called the Big Six because they supply 95% of the UK market with energy, which is a huge market share for a relatively small number of companies. As with any group of
companies with a large market share in any market, the Big Six come under constant scrutiny because of their collective power. Price fixing is a classic power play by companies in this scenario who can ensure that they keep margins high at the detriment of the consumer.
Despite the number of energy suppliers in the UK being so high, regulators are concerned that competition is not where it should be. This is most likely down to the fact that consumers aren’t switching enough – people believe it’s too difficult, time-consuming and confusing to switch energy supplier (hint – it’s not!) so people tend to stick with their current supplier. When users stick with their supplier, and that supplier has the opportunity to price-fix in the market, you can bet the user will be the one losing out and paying too much for energy!
So how trustworthy are smaller companies compared to the Big Six? In fact, they offer a very viable alternative, often with cheaper rates, lower (or no) exit fees, and excellent
support ratings. Now’s the time to compare and switch, see how much you could save!