Smaller energy companies’ market share grows.
The Big Six energy firms of the UK have lost over 7% of their market share over the last five years, new research by Cornwall Energy reveals. The companies known as the 'Big Six' are SSE, Scottish Power, British Gas, Npower, EDF Energy and E.ON UK.
In 2009, 99.8% of energy customers held accounts with one of the half-dozen energy giants, but now that figure rests at 92.4%. So while the majority of customers still remain with the Big Six, a significant number have opted to change to a smaller suppliers.
Could you save money by switching to a smaller supplier?
The current market climate
The Competition and Markets Authority (CMA) is currently holding an inquiry into the competition in the energy market, and is due to report its findings at the end of 2015.
Earlier this year, Ofgem put its weight behind proposals of a full-scale probe prior to the CMA’s investigation, saying that it was necessary to “once and for all clear the air”.
At the time, 43% of customers said that they didn’t trust energy suppliers. It seems likely that these low levels of trust among customers is one of the main reasons behind switches, along with people chasing a cheaper deal – smaller companies are offering some very competitive rates which could save you hundreds of pounds a year. The table below shows how the cheapest tariffs stack up.
|
Provider |
Tariff |
Annual cost |
|
extraenergy |
Fresh Fixed Price Oct 2015 v1 |
£969.54 |
|
First Utility |
£970.54 |
|
|
extraenergy |
Bright Fixed Price Oct 2015 v1 |
£1,001.13 |
|
Sainsbury's Energy |
Fixed Price October 2015 |
£1002.12 |
|
OVO Energy |
Better Energy Fixed (Online) |
£1,003.56 |
|
Green Star Energy |
£1,013.87 |
|
|
Co-operative Energy |
Fair and Square Oct 15 |
£1,019.32 |
|
Green Star Energy |
£1,028.87 |
|
|
Sainsbury's Energy |
Fixed Price December 2015 |
£1,042.25 |
|
Spark Energy |
Direct Debit Advance 4 |
£1,043.24 |
Annual cost estimated for medium usage dual fuel accounts, paid for by monthly direct debit. Table created with lovemoney.com's energy comparison engine.
As you can see, none of the Big Six take any of the top ten spots (though Sainsbury's Energy works with British Gas), and all of these tariffs are set at a fixed rate except Spark Energy.
Also of note is that with some providers, for instance Green Star, you can save a little money just by opting for an online account. Of the big suppliers, Npower is the closest to the top ten with its Online Price Fix October 2015 tariff, which would cost around £1,046.39 a year. But why pay more?
The million-account milestone
First Utility is the first of the smaller energy companies to cross the threshold of one million accounts. This is different from having one million customers, as dual fuel customers hold two accounts, one for gas and one for electricity. first:utility actually has around 550,000 customers now.
Utility Warehouse is next on the list, holding 835,000 customer accounts.
The latest figures from Cornwall Energy show that customers hold 3.8 million accounts with smaller suppliers, and 45.9 million accounts remain with the Big Six.
Could you save money by switching to a smaller supplier?
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