Alter the balance of power
Switching energy suppliers is easy, can save you cash and lower prices for all by breaking the dominance of the Big Six
Too many people are spending too much on gas and electricity. But it only takes a few minutes to secure a better deal. There are lots of great deals around – and, according to Which?, a switch from high cost providers to a best buy could save around £300.
That’s cash that would buy a lot! It’s the same power whether you pay top prices or go for best buy deals. It’s a huge saving for a little online work or a phone call.
The biggest savings come if you are on Npower’s dual fuel standard tariff and you switch to newcomer Green Network Energy, typically about £326.
Not everyone does that well, but if you are on a standard tariff with any of the Big Six companies, British Gas, Npower, SSE, Eon, EDF Energy, and Scottish Power you could save an average £183.
Most consumers are still with these firms. According to energy regulator Ofgem, 85% got electricity from a big provider in December 2016. In 2004, it was almost everyone so it’s slow progress.
Many of the best deals come from companies you have probably never heard of. Besides Green Network Energy, Which? found good rates from Tonik Energy, Avro Energy and Bristol Energy.
In all, there are now more than 50 energy suppliers to choose from – and there could be another 24 if all the firms currently granted or applying for a licence enter the market. It adds up to hundreds of tariffs.
One newcomer, Igloo Energy, pitches at the smartphone user who has a “connected home” promising greater efficiency.
The Big Six are fighting back with greater innovation. Npower’s Cleaner Energy Fix promises all your electricity and 15% of your gas comes from renewable sources. It will cost typical users £1,077 a year – £110 less than its standard tariff but about £210 a year dearer than similar deals from Tonik and Bulb.
And there could be good news for those less able to pay. Ofgem recently announced it was thinking of a “safeguard tariff” to stop vulnerable consumers overpaying, effectively extending existing protection for those on pre-payment meters.
Millions of hard pressed customers are overpaying for energy and suffering due to a lack of competition in the market. More help for the most vulnerable is welcome but people will question whether Ofgem interventions are enough to deliver a market suitable for all.