The volatile state of the current energy market has been highlighted within recent weeks, indicated by the collapse of GB Energy in November. As one of the new independent suppliers, GB Energy had 12 staff and around 160,000 customers on the database. But what caused their demise?
Wholesale prices have risen dramatically over the past few months and smaller energy suppliers are struggling to keep up with supply and demand.
Industry analysts and experts predict that this will be an ongoing trend over the coming months and years for the new suppliers as they can't handle the rising costs of supplying their customers. Despite having a poor year, it looks as if the Big Six will start to see an increase on their market share with more independents dropping from the race.
The UK government has encouraged the development of over 40 companies in the last five years due to their belief that the competition will help to drive down the overall cost of customer's bills. Weaker prices in 2014 allowed new suppliers to take advantage and offer more appealing deals to potential customers.
Prices were already on a steady rise in the UK following the trend of oil prices, however the decision to leave the EU resulted in higher costs for importing gas, coal and electricity.
Four of the Big Six energy suppliers are owned by companies in mainland Europe, so it is currently believed that their prices may not be too drastically affected. EDF is French, EON is German, Scottish Power is part of a Spanish company, and NPower run by a company in Germany.
Power supplies are tightened heading into winter as demand rises. How this will affect prices for consumers is yet to be seen.
It is more important than ever to make sure that the price you're paying is the most competitive on the market. GB Energy customers have been taken over by Co-Op Energy, however there is still the option to shop around - an automatic transfer may not always mean the same tariff or discounts. For more details on saving on your energy spend visit energyadviceline.org.uk