Back in 2006, householders had only ten energy suppliers to choose from, and most bought from one of the ‘big six’, British Gas, EDF Energy, E.ON, npower, ScottishPower or SSE. Today, domestic customers have a choice of more than 40 suppliers, but the big six still supply well over 90% of British households with gas and electricity.
Despite advertising campaigns by the new entrants and price comparison websites, many people still believe that switching supplier is a daunting process. In reality, market reforms by Ofgem to create a more level playing field for small suppliers have made the process quite straightforward.
Customers can research and handle the changeover themselves with the assistance of their newly chosen supplier, or they can use one of Ofgem’s accredited energy comparison websites such as uSwitch, Moneysupermarket or Simply Switch. The full list is available here.
Ofgem suggests that switching can bring annual savings of around £300, according to its latest research. Of course, householders may also want to take the quality of customer service provided by the suppliers into account when choosing, and Ofgem can also help with customer complaint performance results (here).
Smaller suppliers are gradually gaining a presence, making the market more competitive. At the moment, the majority of them have fewer than 250,000 customers, but names like Ecotricity, OVO Energy, First Utility, Bulb, Octopus Energy, Robin Hood Energy, First Utility, Good Energy and LoC02 are becoming more well known. Many of them provide 100% of their electricity from renewable sources, an important consideration for many consumers choosing a new supplier.
Some people find that gathering information to make a decision about potentially switching supplier encourages them to record their electricity use more carefully, identifying trends and focusing on the number of units used as well as the costs. In so doing they become more aware of their usage and this leads to savings in consumption as well as unit costs, a double benefit of switching.
While a series of meter readings will be useful to get a more accurate report, all you actually need to make energy supplier comparisons is your postcode and a recent energy bill (or information about your household and lifestyle). It only takes about ten minutes. Ideally, use an Ofgem Confidence Code accredited comparison site, and be aware that you may need to opt in to seeing the data about suppliers that the website does not directly deal with.
Enter the information that is requested, review the results, and pick a new plan. It is as simple as that. Some options will be variable rates, some will be fixed over a specified term, and some will have early exit fees. The choice is yours.
The switchover will take around three weeks, and there will never be an interruption to supply. The same cabling and meter will be used. The only noticeable changes will be the company name on the bills, and the reduced amount on the bottom line!