Energy deals: Smaller firms offering lower costs

IF you are thinking about switching energy companies, there’s rarely been more choice.

Growing numbers of consumers are deserting the Big Six suppliers in favour of one of the smaller rivals that have sprung up.

Figures from Gocompare.com show 58% of energy switchers this year have been tempted by one of the smaller companies.

While the names may be unfamiliar, they tick all the right boxes when it comes to cost.

Ben Wilson, energy spokesperson for Gocompare.com, said: “Smaller energy companies have been offering the cheapest energy deals for quite some time, so it’s no wonder they are eating the Big Six suppliers’ lunch.

“Currently, Iresa, Avro Energy, So Energy, GnERGY, iSuppluEnergy, Flow Energy, GB Energy Supply and Octopus Energy are all offering dual fuel tariffs costing under £770 a year.

“The only top 10 dual fuel tariff offered by a Big Six supplier, albeit indirectly, is from Sainsbury’s Energy (via a partnership with British Gas), at an average annual cost of £750 with a £30 per fuel early exit fee.

“Many people probably won’t have heard of several of the smaller suppliers, but I’d encourage them to not let that put them off.

“These suppliers are subject to the same Ofgem licencing conditions as their bigger counterparts, and their customers benefit from the same protections, too.

Ben continued: “As well as the cost of the energy itself, check you’re comfortable with any early exit fees if you’re considering a fixed tariff.

“There may be no financial penalty for leaving a deal early, but charges of £30 per fuel aren’t uncommon.

“But with more than half of those who switch energy tariffs saving at least £207 per year, taking a few minutes to compare what’s available is time well spent.”

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