The British media have been openly critical of the ‘Big Six’ energy companies and their price fixing activities in the past, whereby they worked together to raise the industry prices to give the illusion of the market price.
In 2009, these six energy companies owned an incredible 99.8% of the UK energy market: British Gas, EDF Energy, Npower, E.ON, Scottish Power and SSE .
Since 2009, independent energy companies have entered the market and fought for their place, with often better customer service and greener, cleaner options. After taking 13.4% of the market in just eight years, it’s time we asked, do independents offer the cheapest energy deals UK specific?
Who are the independents?
In terms of customer share, these are the main independent energy companies in the UK:
- Co-operative Energy 1%
- Extra Energy 1%
- First Utility 3%
- OVO 2%
- Utilita 1%
- Utility Warehouse 2%
- Others 4%
To properly answer whether independents offer the cheapest energy deals UK specific, we must look at their dual tariff prices, the yearly amount they charge for gas and electricity combined.
Six most expensive
- Utilita £1231
- Ebico £1191
- Ecotricity £1131
- Green Energy UK £1123
- Good Energy £1112
- Spark Energy £1005
Six cheapest
- Flow Energy £835
- First Utility £833
- Places For People Energy £823
- SO Energy £816
- GB Energy Supply £798
- Extra Energy £797
Big Six
- British Gas £1074
- SSE (Varies) £1047-960
- E.ON £1046
- Scottish Power £870
- Npower £834
- EDF £825
What do all these statistics tell about the cheapest energy deals?
The short answer is that yes, independents do offer cheaper energy deals UK specific, rather than the big six energy companies. The long answer is that actually there are only four independents (Extra Energy, GB Energy Supply, SO Energy, and Places For People Energy) who offer a better annual dual fuel tariff than the cheapest of the Big Six (EDF).
At the other end of the scale, there are five independent energy suppliers (Utilita, Ebico, Ecotricity, Green Energy UK, and Good Energy) who are more expensive than the most expensive of the Big Six (British Gas). Of these five most expensive independents, Utilita are a pay-as-you-go service, so their price is a bit warped, Ebico are a not-for-profit who buy their energy from SSE and charge a flat rate for all customers, with the ‘profits’ going to social causes helped through their trust. Ecotricity, Green Energy UK and Good Energy are all suppliers of renewable energy, which at the moment is the cleanest option but won’t get you the cheapest energy deals UK specific.
What does the future hold?
Pre-Brexit our energy bills were actually falling, but post-Brexit they are rising steadily, with Npower increasing their rates by 15% very soon, and British Gas raising their gas prices by 4.8% later this year, just to give a couple of examples.
Trends suggest that independents do offer the cheapest energy deals on average, with the gap between the average Big Six price and the UK energy market’s cheapest offer being around £329. This has lead to more than five million people switching in just eight years, with more expecting to do the same in the near future, especially as renewable energy companies, like Ecotricity and Green Energy UK, and socially positive fuel companies, like Ebico and Robin Hood Energy, start to catch on.
Interested in finding the cheapest energy deals, but not quite sure where to look? Go to My Energy to find out who can give you the best offer.
