Will independent suppliers help you save?

The UK’s most highly rated price comparison and switching service for energy users has urged consumers in search of the best deals to seek out smaller independent suppliers.

Julian Morgan, managing director of the service ranked number one on consumer feedback site Trustpilot, said more independent suppliers were entering the energy market than ever and challenging the monopoly of the Big Six.

“The clear message for consumers is that there are highly competitive alternatives to the major players now and it makes sound financial sense to take a look at what the independents are offering,” Mr Morgan said.

“Consumers have made it clear that they have lost faith in the Big Six after years of high prices and lack of competition in the market. I am pleased to report that that situation has started to change.

“The suppliers on our panel now include more small and independent suppliers than ever before, and they’re offering highly competitive deals in a bid to take on the Big Six.

“We’re advising both domestic and non-domestic energy consumers to use a reputable and independent price comparison service like the Energy Advice Line to seek out the smaller players to see what they have to offer.

“These consumers could well save money and bag a better level of customer service if they do.”

Extra Energy, a highly competitive new entrant to the UK energy market, launched two new tariffs costing less than £940 in a bid to take the top spot for the cheapest dual-fuel energy tariff of 2014.

In November it was reported that more than 36% of all consumers who switched energy supplier had switched to Extra Energy to take advantage of the big savings being offered to homes and businesses.

The company claims that by running “a highly efficient and lean operation” that does not advertise it is able to pass on big savings to consumers.

Mr Morgan the business model adopted by Extra Energy and other new entrants to the UK energy market was proving very popular with business and domestic energy consumers.

“High prices, poor service and tarnished reputations of the big energy suppliers are prompting more and more consumers to consider their options,” Mr Morgan said.

“Lots of consumers are now switching to small, independent suppliers that might not be household names but are offering competitive deals and the prospect of better customer service.

“Smaller companies are often more nimble and customer-focused because they have to be competitive to get ahead. This is winning over customers who have lost faith in the Big Six.”

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit www.energyadviceline.org.uk

Profit margins higher than estimated

The Energy Advice Line has welcomed calls by Ofgem for consumers to switch energy suppliers now in order to save up to £250 a year on their gas and electricity bills.

The call followed confirmation by the regulator that energy companies were failing to fully pass on the fall in wholesale gas prices they had enjoyed in the past year.

Quizzed by MPs this week about why suppliers had failed to deliver bigger price cuts to consumers, Ofgem chiefs agreed this was a “cause for concern”.

But they said they were focusing on encouraging consumers to change suppliers to make savings, adding, “generally it is a good time to switch”.

Julian Morgan, managing director of the price comparison, switching and advice service for energy consumers, said Ofgem’s advice was sound even when retail energy prices were falling.

“Most of the Big Six suppliers have now announced reduced charges for household gas after prices they pay in the wholesale market have fallen,” Mr Morgan said.

“However, this does not mean that consumers can sit back and assume they will enjoy dramatically lower bills. Sadly, this won’t be the case.

“Ofgem itself has raised concerns about why the size of the cuts being passed on are so small, and has pointed out that the best way for households and businesses to make the most of falling gas prices is to shop around, find the best deals and switch accordingly.”

The committee of MPs this week heard that Ofgem forecasts that customers' average dual-fuel bills will now drop by £21 to £1,305 in the year ahead.

At the same time, the profit margin per customer of a typical large supplier will rise to £114, £9 more than Ofgem estimated last November.

Energy companies have argued that the wholesale price of gas only makes up about half of a domestic energy bill and that they therefore cannot pass on the entire fall in the price they pay for energy.

But Mr Morgan expressed disappointment that the regulator and energy companies were still unable to agree on the basics of costs, prices and profits in the energy market after years of discussion.

“Suppliers and the regulator are still bickering about how profit margins are calculated, which is very disappointing and of no help to consumers at all,” Mr Morgan said.

“What ordinary energy bill payers need is a transparent and competitive energy market so that they can make fully informed choices."

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit www.energyadviceline.org.uk

Most expensive energy tariffs revealed

As winter draws in and energy bills start to creep up, a list has been published that highlights the ten worst energy deals on the UK. Four of which are misleadingly labelled as a 'standard' tariff.

Four of the Big Six energy companies feature on the list where independent supplier Co-operative Energy sits in the number one spot with their 'Green Pioneer' tariff.

Npower, Scottish Power, SSE, and EDF are the four Big Six companies named and shamed this month. Pay as you go customers are still in the dark as to how their tariff truly measures up as this research only takes into consideration those on contracted prices.

Co-operative energy came in at the top of the list with a total cost of £361 per year than the cheapest tariff on the market.

Overall an estimated total of 2.3 million people are using these ten tariffs, and are typically higher priced as they require the customer to pay by cash or cheque, rather than the cheaper option of monthly direct debits.

Julian Morgan, managing director of the price comparison and switching service, Energy Advice Line, commented, "It's more important than ever for consumers to not only be aware of the price that they are apying, but also how their chosen method of payment can affect their overall annual spend.

"It's reached that time of year where bills start to rocket due to the colder weather and turning on the central heating. Be sensible with your temperatures and don't find yourself landed with a large bill out of the blue."

The Energy Advice Line provides a service that is not only free, but also completely impartial. Advice is available for both business and domestic customers that may need assistance in understanding their bills, or finding the best rate.

For more information visit energyadviceline.org.uk

Suppliers must support collective switching

The Energy Advice Line has welcomed an Ofgem ruling that requires energy suppliers to publicise "collective switch" tariffs on their Cheapest Tariff Message (CTM).

Suppliers are already obliged to include information on bills about the cheapest tariffs available and how much a customer might save by switching to the deal.

But under a new ruling, suppliers must also include details of the tariffs available through collective switches - those organised by a group of people who use their buying power to get a better deal.

Normally a customer would have to register with the collective before switching, but under the new ruling they will be able to switch after the collective rate has already been fixed.

"When carried out in a responsible and trustworthy manner, we value collective switches as an innovative way of engaging consumers and facilitating the switching process," Ofgem says. "Collective switches provide consumers, including the vulnerable, with another means of accessing better energy deals, which in turn enables them to save money."

But Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said it was important for consumers to examine collective switch tariffs very carefully as often they were not as cheap as they appeared at first glance.

"There's no reason why more customers should not benefit from collective switch tariffs, an innovative way of securing good deals and encouraging consumers to switch," said Julian Morgan, managing director of the Energy Advice Line, the UK's leading price comparison, switching and advice service.

"But it's important to look at the details of the tariffs and ascertain wehther it is genuinely cheaper than other deals available elsewhere. The collective may not have had access to the best deals, for whatever reason, so consumers need to be careful."

Mr Morgan said there was no better way to find the best deal than shopping around and checking the market.

"You should do this yourself or use the services of a reliable and reputable service like ours. Our quotes are quick, simple and you can compare this with what you are already paying, or the collective switch tariff publicised on the CTM.

"The important thing is to stay in control of your energy supplies, switch regularly and make informed decisions. That's the best recipe for saving money on your energy bills."

The Energy Advice Line is a concumer champaign and an indepdendent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information, visit energyadviceline.org.uk