The big six energy companies have dominated the UK for decades. The majority of customers trust their familiarity, which shows in the 70% market share they hold.
However, when it comes to customer satisfaction, there is a different story to be told.
According to the 2021 Which? customer satisfaction survey, out of 25 companies listed, how many of the big six featured in the top 17 suppliers? Take a guess…
0. That’s right, the highest placed ‘big’ energy supplier ranked joint 18th. The rest of the group took places 20th-25th.
But many people are still wary of small suppliers, even though they often offer better deals along with proven customer service. So, can we trust smaller suppliers? This article will help to answer the question.
What Is A Small Energy Supplier?
Small energy suppliers are sometimes called ‘independent suppliers’. They are any energy supplier which doesn’t belong to the big six energy companies in the UK.
Usually, a smaller energy supplier will have around 250,000 customers or less.
Why Are There More Small Energy Suppliers Today?
Have you noticed more adverts on the TV for smaller energy companies?
In the UK, there are currently more than 50 energy companies, the majority being small suppliers. When we look back in time, even a short flashback to 2013, the big six energy suppliers had almost 100% control of the UK energy market.
| Energy Supplier | 2014 Market Share | 2015 Market Share | 2016 Market Share | 2017 Market Share | 2018 Market Share | 2019 Market Share | 2020 Market Share |
| British Gas | 24% | 24% | 23% | 20% | 20% | 19% | 18% |
| EDF Energy | 13% | 12% | 12% | 11% | 11% | 11% | 10% |
| Eon | 16% | 16% | 14% | 13% | 13% | 12% | 15% |
| SSE / OVO Energy | 17% | 16% | 15% | 14% | 9% | 12% | 3% |
| Scottish Power | 11% | 11% | 11% | 10% | 10% | 9% | 9% |
| Npower | 12% | 11% | 10% | 10% | 14% | 7% | 15% |
| Total Each Year | 93% | 90% | 85% | 78% | 77% | 70% | 70% |
However, Ofgem introduced new reforms, which gave alternative suppliers a fairer chance to gain customers and have an impact on the energy market. These reforms, along with the government-backed Energy Switch Guarantee made it a lot easier for customers to switch providers.
These small energy suppliers could then offer prices to compete with the bigger firms, along with other benefits to try and influence customers to try a new company.
Switchcraft state ‘don’t forget to include the little guys because they could offer you some surprisingly good deals’.
Are Small Suppliers Safe?
Many people think using a small supplier isn’t safe and that using a bigger energy company is better.
But small suppliers are safe. More importantly, Niccolo is backed by CNG. In the event of the company failing, CNG would take over all contracts at the currently agreed prices immediately. CNG are a large supplier, turning over more than £1B last year.
Are Small Energy Companies Risky?
Smaller energy companies are seen as less reliable. This could be due to some of the statistics, such as nine small and medium-sized energy suppliers collapsing in 2019, with 12 suppliers going out of business in 2018.
This could have resulted in this lack of confidence from customers, as well as bigger energy companies being around for so long that they have built trust.
However, it is important to know that Ofgem has reassured us that supply will not be disrupted. A replacement gas or electricity supplier will be appointed to take on the failed supplier’s customers.
So, if you were to switch to a small supplier, which offers better customer service and support such as Niccolo, you’re not taking a risk but making a wise decision when it comes to picking an energy supplier.
Are Small Supplier Customers Happier?
The short answer is yes.
We all want to be happy with our energy provider, right?
As stated earlier, the big six energy suppliers’ customers are clearly unhappy when we compare them to small and medium-sized providers.
Consistently, bigger energy firms come out worse in customer satisfaction surveys. According to the Which? results, small energy firms make up the top 5 of the UK’s best energy companies.
In comparison, five (yes five!) of the country’s biggest suppliers are in the bottom five positions.
| Energy Supplier (Places 18-25) | Which? customer score |
| 18. Boost | 62% |
| 18. British Gas | 62% |
| 20. E | 61% |
| 20. EDF Energy | 61% |
| 22. Eon | 60% |
| 22. SSE | 60% |
| 24. Scottish Power | 55% |
| 25. Npower | 54% |
Just think, the big six energy companies have had total control of the energy market for decades, with more resources and experience than the majority of these small energy firms, yet still, get it so wrong.
This isn’t just a one-off, 2021 has been the third consecutive year that all of the big six have featured towards the bottom of the satisfaction table. These bigger companies aren’t listening to what their customers want and smaller companies are taking advantage.
Small energy suppliers have fewer customers to handle, making a lot more time to spend with individual customers, creating a relationship and trust. Large energy firms cannot offer the same amount of care due to the number of customers they have.
So, do you want to be happier when it comes to energy? If so, contact the team at Niccolo and see how you could not only save money but receive unbeatable customer service.
What Are The Advantages Of Small Energy Providers?
So, what sort of advantages do small energy providers have?
- Lower costs for customers – with lower overheads, the supplier can offer competitive rates in comparison to bigger energy providers.
- Better deals – smaller energy providers usually offer their best deal, with a 2019 survey showing small energy customers were more confident their provider offered the cheapest deal.
- More variation – more competition in the market has shown lots of creativity in smaller energy companies, with variety, benefits, tariff innovation and lower prices.
What are you waiting for? Get in touch with Niccolo and speak to the team of experts who would be happy to help you save money.
What Are The Disadvantages Of Switching To A Small Supplier?
Surely there must be one disadvantage?
Well, even according to money experts MoneySupermarket, they state ‘there are generally no disadvantages to switching to a smaller supplier.’
You’re receiving better customer service than the bigger companies, plus you’ll likely save yourself a lot of money. You also have the added benefit of reassurance from Ofgem that you’re protected if the company goes bust.
Am I Protected If My Independent Energy Supplier Goes Bust?
With more small energy companies entering the market, as well as some going bust, you may be worried that you’ll be protected if your energy supplier goes bust.
Ofgem has introduced measures that will protect customers if your energy company goes bust, so you should be reassured that you won’t be at risk of being cut off. SimplySwitch state ‘this is not something that you need to be worried about’.
So, what happens if your small energy supplier goes bust? Here is how Ofgem will protect you:
- If a supplier goes out of business, customers energy supply and credit balance are protected.
- A new provider will be appointed on behalf of the customer, these are called ‘supplier of last resort’ (SoLR).
- The SoLR will be made sure that they can meet their obligations.
- Customers will be able to switch to a new contract with another supplier without cancellation fees or move on to a contract with the SoLR.
Are Small Energy Companies Reliable?
In terms of customer service and making sure you’re looked after; small energy companies are shown to offer a better experience with superior complaint handling compared to bigger suppliers.
When it comes to small companies collapsing, there have been more than 15 suppliers that have closed down since 2018, however, you are protected by Ofgem if this happens.
How Are New Energy Suppliers Regulated?
Ofgem has created more stringent checks, which has made the process of new suppliers wanting to enter the energy market a lot tougher.
This will hopefully decrease the number of new suppliers failing, with companies needing to show that they can become a solid provider, having to pass tests to ensure the safety of customers.
Should I Switch To A Small Supplier?
This of course depends on your requirements and needs. The gas and electricity supply will stay the same. But if you’re looking for better customer service, or just the cheapest option available, you should check the market.
Many small suppliers can offer cheaper rates and better service than the big six energy suppliers but always do your research.
Some things to look out for are:
- How long they’ve been on the market.
- Customer service rating.
- Account management.
- Rewards and benefits they offer.
Niccolo can offer advice on prices and tariffs to help make the decision easier for you.
How Long Does It Take To Switch Energy Supplier?
So, you’ve seen the benefits, now you want to get the process started.
Well, be assured that your energy supply won’t be interrupted when switching energy supplier. Also, there is no need for any work to be done on your home.
Your electricity and gas supply will stay the same, coming through the same wires and pipes, all at a cheaper price with better customer service.
The switching process will take no more than 21 days on average, which includes a two-week ‘cooling-off’ period that allows you to cancel without any charges.
Can I Still Switch Energy Supplier If I Am In Arrears?
If you have been in debt for less than 28 days, yes you can still switch energy supplier.
For any money that is owed for longer than 28 days, the debt must be paid back first before you switch energy supplier.
This is unless you have a prepayment meter. You can still switch energy supplier, only if you owe less than £500 for gas and/or £500 for electricity.