Small energy suppliers in the UK energy market are starting to carve their niche as more consumers are beginning to switch from the big six. It is estimated that in the coming years, the majority share of the big six in the energy market will not hold on for much longer. One of the primary reasons for considering a small energy supplier is the cheaper tariffs. If you run prices through a comparison website like Utility Bidder, you will likely see those small suppliers offer the most affordable rates.
Why do small energy suppliers offer cheaper tariffs?
Cheaper rates offered by small energy suppliers attract both residential and commercial consumers. There are several reasons why these small companies can afford to offer lower tariffs than the big six. The UK government is encouraging more competition in the energy market, which means that small suppliers have some advantage over the big six. For instance, smaller suppliers are exempt from Energy Company Obligation. The savings brought about by this exemption can be passed on to their consumers; hence, the cheaper deals.
How to find the best small energy supplier
If you are considering switching to a small energy supplier, one of the best ways to do it is to run a comparison online. Look for an impartial website where you can get a complete summary of all the deals available in the market. In using a comparison website, you need to provide details such as your postcode and your current consumption. Most comparison websites also help consumers switch to their preferred supplier.
Does switching result in service interruption?
It is a common misconception that switching energy suppliers will result in a service interruption. On the contrary, the process is seamless and straightforward. Small suppliers and the big six use the same wires and pipes to deliver utilities. As such, there is no need to do any work or replace any infrastructure.
Is there a risk of small suppliers going out of business?
Another reason why consumers hesitate to switch to a small energy supplier is the fear that the company may eventually go out of business. Fortunately, Ofgem has established strict regulations to protect consumers. If a small energy supplier were to go out of business or be acquired by a bigger company, they are mandated to notify all their customers so that they are given enough time to switch to a new supplier and prevent any service interruptions.
Considerations when switching to a new energy supplier
The cheaper tariffs offered by small energy suppliers are what attract consumers to transfer. But before you switch to a new supplier, it is recommended to consider other factors such as customer service. What’s great about small energy suppliers is that they consistently have better customer service and have a more personalised approach in dealing with their customers. Another consideration is the option of getting green energy. Small energy suppliers offer consumers the opportunity to get their electricity from renewable sources. If you give importance to where the energy supplied to your home comes from, it is time to think about switching and check what other suppliers out there are offering.