Huge volumes of customers have left the ‘big six' energy companies in favour of cheaper gas and electricity from smaller, independent energy suppliers.
Figures published by the Mail on Sunday suggest customers have switched to alternative suppliers in the hope of getting better electricity and gas prices on cheaper utility tariffs.
The big six gas and electricity companies – British Gas, SSE, E.ON, EDF, npower and Scottish Power – supply 95% of UK households and are currently under investigation by the Competition and Markets Authority (CMA) to see whether there is effective competition in the UK energy market. In the space of a year, independent gas and electricity suppliers have doubled their market share, yet they only supply around 5% of UK households.
Not only could the dominance of the big six energy suppliers result in uncompetitive prices, their chokehold on the market also means many customers are unaware they can switch to the cheapest gas and electricity supplier, or are unaware of the benefits of switching utility providers or tariffs.
Recent figures from Ofgem also suggest the dominant energy firms will double their profits over the next year. In 2013, Ofgem estimated that suppliers would make an average pre-tax profit of £53 per dual fuel customer, with a margin of 4%. Now the regulator estimates the next year will see gas and electricity supplier making £106 per customer - a margin of 8%. Cheap gas and electricity prices mainly offered by alternative suppliers.
"For the first time in two-and-a-half years, there are now energy deals available costing less than £1,000 a year for switchers. Wholesale prices are now around 15pc down on this time last year and small suppliers are taking advantage, nimbly launching great value cut-price offers," says Mark Todd, Director of Energy Helpline.
According to the Department of Energy and Climate Change (DECC), over 2m gas and electricity customers have switched to smaller, cheaper utility suppliers and are saving around £200 on energy bills per household.
Energy Secretary Ed Davey said: "We have almost trebled the number of small suppliers since 2010 and our reforms are making it easier and quicker for people to switch energy suppliers… Households could save £200 a year or potentially more by switching supplier, and we encourage all consumers to shop around for the best deal for their energy bills."
Small independent suppliers such as Co-operative Energy, First Utility and Extra Energy currently offer the best electricity and gas prices on the market, with rates fixed at less than £1000 a year. The average dual fuel bill stands at £1,346 a year.
Figures published by the Mail on Sunday suggest customers have switched to alternative suppliers in the hope of getting better electricity and gas prices on cheaper utility tariffs.
The big six gas and electricity companies – British Gas, SSE, E.ON, EDF, npower and Scottish Power – supply 95% of UK households and are currently under investigation by the Competition and Markets Authority (CMA) to see whether there is effective competition in the UK energy market. In the space of a year, independent gas and electricity suppliers have doubled their market share, yet they only supply around 5% of UK households.
Not only could the dominance of the big six energy suppliers result in uncompetitive prices, their chokehold on the market also means many customers are unaware they can switch to the cheapest gas and electricity supplier, or are unaware of the benefits of switching utility providers or tariffs.
Recent figures from Ofgem also suggest the dominant energy firms will double their profits over the next year. In 2013, Ofgem estimated that suppliers would make an average pre-tax profit of £53 per dual fuel customer, with a margin of 4%. Now the regulator estimates the next year will see gas and electricity supplier making £106 per customer - a margin of 8%. Cheap gas and electricity prices mainly offered by alternative suppliers.
"For the first time in two-and-a-half years, there are now energy deals available costing less than £1,000 a year for switchers. Wholesale prices are now around 15pc down on this time last year and small suppliers are taking advantage, nimbly launching great value cut-price offers," says Mark Todd, Director of Energy Helpline.
According to the Department of Energy and Climate Change (DECC), over 2m gas and electricity customers have switched to smaller, cheaper utility suppliers and are saving around £200 on energy bills per household.
Energy Secretary Ed Davey said: "We have almost trebled the number of small suppliers since 2010 and our reforms are making it easier and quicker for people to switch energy suppliers… Households could save £200 a year or potentially more by switching supplier, and we encourage all consumers to shop around for the best deal for their energy bills."
Small independent suppliers such as Co-operative Energy, First Utility and Extra Energy currently offer the best electricity and gas prices on the market, with rates fixed at less than £1000 a year. The average dual fuel bill stands at £1,346 a year.
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