Shaming of the energy Big Six
Not ONE of their tariffs in list of cheapest deals
NONE of the major energy firms can boast an entry on a list of the best 100 household tariffs.
Most customers of the ‘Big Six’ – British Gas, SSE, Npower, E.on, EDF and Scottish Power – pay an average of £1,145 a year.
Yet smaller firms are offering dual-fuel deals that are £300 cheaper, research shows. They have 75 tariffs at under £1,000 a year and another 25 packages at less than £900 a year.
One of the best deals – £811 – comes from Economy Energy, while Usio Energy charges £812. Outfox the Market has an even cheaper tariff – £807 – but it imposes an extra monthly subscription.
Stephen Murray of Money Super Market, which carried out the research, said: ‘This really is a watershed moment.
‘The retail energy market continues to go from strength to strength, as evidenced by increased switching numbers month on month.
‘There are over 60 suppliers offering competitive tariffs and great customer service and they are taking market share away from the Big Six. The Big Six are simply responding by raising their prices again and again.’
Mr Murray said customers paid a high price for being loyal to well-known brands.
‘Ultimately, whether you’re with a Big Six or emerging supplier, if you’ve stayed on the same tariff for more than a year or two, the chances are you’re paying way too much for your energy,’ he added.
‘We’d encourage you to get online, explore all the great deals available on the market, and switch today. You’ll save £250 just like that, and quite possibly more.’
The larger suppliers do offer short-term deals that are cheaper than their £1,145 standard variable tariffs but they still run into four figures.
The best price comes from E.on at £1,053, followed by British Gas at £1,055, SSE at £1,066, Npower at £1,071 and Scottish Power at £1,075.
Small companies do not have the financial muscle of the major players or their call centre capacity. However there is a safety net regime that allows customers to transfer elsewhere if their supplier runs into trouble.
Customers can switch by contacting the small suppliers’ websites direct or by using a switching service, which takes a commission from most energy firms.
The major energy suppliers have faced a growing backlash over recent increases. Last week Npower became the latest to announce a price rise, with a million customers on its standard variable tariff to see bills rise by an average of 5.3 per cent from June 17.
Shona Eyre, who is a uSwitch.com energy expert, said: ‘In April, three of the Big Six energy suppliers hiked their prices and customers have responded by seeking out cheaper deals elsewhere.’