The ink is barely dry on the latest round of price rise from the Big Six energy suppliers, but new research from MoneySuperMarket today shows the likes of British Gas and E.on are finding it increasingly hard to compete with emerging suppliers, with no Big Six presence currently in the top 100 energy deals on the market.
Emerging suppliers have been chipping away at the dominance of the Big Six for the last few years but, with so many competitive deals on offer, remarkably the bigger suppliers are not even close to offering the savings than customers can get from the ever-increasing number of small and medium sized suppliers.
The current cheapest Big Six tariff, from EDF, is a newly launched 14-month fixed deal, with an average annual bill value of £1,031. This is over £220 more expensive than the cheapest deals in the market from the likes of Economy Energy, at £811.
Of the cheaper deals in the market, almost 25 are under £900 and over 75 are under £1,000. These deals are dominated by new and emerging suppliers such as Bulb, Avro Energy, Economy Energy, Solarplicity, Octopus, Engie and iSupply Energy.
Conversely, the Big Six are languishing low down in the deals table. E.on’s cheapest deal is £1,053, followed by British Gas (£1,055), SSE (£1,066), npower (£1,071) and Scottish Power (£1,075). The average Big Six standard variable tariff currently sits at £1,145.
Stephen Murray, energy expert at MoneySuperMarket, said: “This really is a watershed moment and it’s been a long time coming. The retail energy market continues to go from strength to strength, as evidenced by increased switching numbers month-on-month. There are over 60 suppliers offering competitive tariffs and great customer service and they are taking market share away from the Big Six.
“The Big Six are simply responding by raising their prices again and again. We know that customers are loyal to well-known brands, regardless of the costs – but in the energy market, loyalty really doesn’t pay and the people who switch are the ones reaping the financial benefits.
“Ultimately, whether you’re with a Big Six or emerging supplier, if you’ve stayed on the same tariff for more than a year or two, the chances are you’re paying way too much for your energy. We’d encourage you to get online, explore all the great deals available on the market, and switch today. You’ll save £250 just like that, and quite possibly more.”