Smaller energy suppliers benefit the most from increased switching


The prospect of saving on energy bills has driven over two million customers to change their supplier since 2010, fresh figures released by the DECC (Department for Energy and Climate Change) were able to reveal, with the smaller suppliers being the net victors of this trend.

In fact, the large majority of switching customers decided to opt for an independent company rather than a member of the “Big Six” group. This is probably also one of the reasons why the number of small suppliers trebled over the past four years.

In order to further bolster its support for this specific category of companies, the Government and Ofgem published a list of commitments that address some of the key concerns to make it easier for them to enter and grow in the energy market.

For starters, the Government appointed a senior civil servant responsible for managing relations with the independent suppliers, giving them the opportunity to discuss concerns and shape policy development at an early stage with aim of increasing competition.

Additional measures will involved the creation of an online resource for independent energy suppliers to improve communications with the Government and some serious attempts at reducing the burdens imposed by industry codes and processes that can put independent suppliers at a competitive disadvantage.

Energy and Climate Change Secretary Ed Davey commented:

“Independent energy suppliers have already made a breakthrough in giving consumers new competitive options when compared with the Big 6.

“But we want to go further and by working with these smaller challenger firms, and by making it easier for them to work with us, we can embed progress and extend the benefits to more people in Britain.”


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