Published Date : Sep 23, 2015
The small energy provides in the U.K. currently hold around 13.4% of Britain’s market for household energy supply. This is a steep increase from the 2.6% that they collectively held in 2014. Analysts say that the success stories of small suppliers of energy are growing as consumers are becoming increasingly disgruntled over the lack of services offered by the bigger suppliers.
More than 860,000 accounts were registered in 2015 till July, collectively by First Utility and Ovo Energy, two independent energy suppliers. The figures are provided by the Cornwall Energy consultancy.
According to the data, the larger companies that are together known as the ‘Big 6’ suppliers, lost nearly 660,000 accounts in the same period.
Consumers in the U.K. have become highly dissatisfied with the allegedly below par customer service, coupled with skyrocketing energy bills that the top suppliers charge them with. The Competition and Markets Authority stated in July that they had discovered that the ‘big six’ had overcharged their customers by nearly 1.2 bn pounds per year.
Ed Kamm, First Utility chief customer officer, said that most of the customers on standard tariff plans figured out that they were being ripped off. Their search in the market led them to the smaller companies that are offering what the bigger ones aren’t: cheaper energy and better service.
First Utility had earlier reported 561 mn pounds in revenue for 2014. They have since doubled their number of accounts in at least three of the four years till date. They added 275,000 customers in 2015 till July.
Regulatory reforms have changed the scenario of the U.K. energy market, where new entrants now have more of a say than before.