Little guys making big impact on energy prices

by John Fitzsimons on 22 October 2009  |  1 comment
Tweet

OVO Energy and First:Utility are showing up the big 6 with their energy pricing – something we should all support!

I always love to root for an underdog. I couldn't have it any other way frankly, as a West Ham fan.

This is probably why I have really enjoyed the emergence of OVO Energy and First:Utility in the past six or seven weeks, as I explain in my video on why now is a good time to explore changing energy supplier.

Both have shaken up the Big Six - Eon, EDF, npower, British Gas, Scottish Power and Scottish and Southern - with some very competitive tariffs, which have forced the bigger boys to cut their prices. All this after Ofgem wrote to the heads of the Big Six, demanding answers as to why their tariffs remained so expensive when the costs of wholesale energy had plummeted over the past year.

Until today, First:Utility actually held top spot for the cheapest tariff, but it has now been usurped by OVO, with a tariff costing just £921 a year, more than £200 cheaper than the average standard tariff.

It's fantastic to see the Big Six having their supremacy challenged, and a real undermining of their constant excuses as to why tariffs can't be reduced. Competition and choice can only be a good thing for us all as consumers.

It's also got to be a positive that OVO have put a tangible emphasis on green energy, with 15% of its energy coming from renewable sources - far more than the industry average.

Having met the founders of the company this week, there is a clear excitement at OVO about doing something genuinely different to the existing energy suppliers, and making a difference to the cost - and just as importantly, quality - of the service we get.

Both First:Utility and OVO have already made a real difference to the energy landscape. It will be fascinating -and potentially, for us customers, quite lucrative - to see how the big boys respond.

If you are considering changing energy supplier, why not use the lovemoney.com comparison tool to see which tariff is best for you? The average saving reported by lovemoney.com readers who have used the tool is a cool £215!