Smaller Energy Players Challenge Tariffs of ‘Big Six'

Smaller energy players are beginning to make a dent in the market share of the ‘big six' energy suppliers, by adopting a cheaper tariff policy.

The emergence of smaller and independent energy suppliers First Utility and OVO Energy have begun to bring winds of change in the UK energy market, which has long been dominated by the ‘big six' energy suppliers (British Gas, E.ON, EDF, Scottish Power, Npower and Scottish and Southern Energy.)

First Utility, a new independent electricity and gas supplier based in Warwick, aims to deliver some of the cheapest energy tariffs in the UK and can offer the advantage of providing customers with a smart meter to allow them to monitor their own energy usage.

The provider also claims its new dual fuel iSave deal offers customers savings of 14.5 per cent, compared to established players such as British Gas. For instance, it says the average bill at medium consumption* on a British Gas standard dual fuel tariff is £1,127 whereas First Utility's average bill is £964.

Gareth Kloet, head of utilities said the emergence of new suppliers in the UK energy market will shake up prices to the benefit of the end consumer.

He said: "Price is currently the most important feature for customers seeking a better deal from their energy provider.

"Since the start of the year, all of the energy suppliers have started to reduce prices for their existing customers but the online war is now much hotter and we have now recently seen lots of new tariffs being launched by the big six."

Meanwhile, OVO Energy an independent energy supplier which also recently launched in the UK, has set out to give customers what it describes as a ‘better deal' by introducing a fixed price plan, so even if wholesale market energy prices go up, the price paid by the consumer remains the same.

On top of this, the company has also launched a green energy plan which provides 100 per cent green electricity but is more expensive than the fixed energy plan.

Kloet added: "The market has been crying out for greater choice and reduced prices for a long time. In 2008, energy prices rose by a staggering 42 per cent resulting in many households struggling to pay for the necessities in life.

"The arrival of new entrant OVO together with a more competitive stance being taken by First Utility is great news for customers seeking an alternative to the ‘big 6'.

"These developments help to increase competition and raise the bar for an eagerly awaiting audience who simply want cheaper energy from their chosen provider."

*The average annual consumption for medium users is based on 3,300kwh for electricity & 20,500kwh for gas

To read more about smaller energy suppliers please visit http://www.confused.com/gas-electricity