Introduction
The United Kingdom has a very competitive energy market. Currently, in the UK there are more than sixty energy suppliers that provide domestic and business customers with gas and electricity. Suppliers buy energy in the wholesale market to then sell it to customers. The suppliers do not generate or distribute the electricity, which means that they normally do not own cables and pipes used to deliver electricity to your home or your business’s premises.
Domestic and business customers have the freedom of choosing their energy supplier, and if they are not satisfied with their services or rates, they can switch to a different one. Each energy supplier offers a range of various tariffs and contract types, and the energy prices can differ depending on which supplier you choose. That’s why doing a price comparison before signing a contract with a supplier is essential. To get the best energy deal, seeking help from an energy broker is advised as they work closely with the suppliers and can tell you what is the best offer for your individual needs.
When you look into available energy suppliers in the UK, you will encounter the term ‘Big Six’, which refers to the six biggest providers. These companies are:
- British Gas
- EDF Energy
- E.ON UK
- Npower
- Scottish Power
- SSE
It is estimated that seven out of ten British households have their gas and electricity supplied by these companies. Even though these suppliers might be the most renowned ones, there are a huge number of smaller energy companies that often offer more competitive and flexible energy tariffs.
Many people wrongly assume that the most popular companies, which belong to the ‘Big Six’ will be the best choice. With so many energy suppliers available, smaller companies are gradually redefining the structure of the energy market. Nevertheless, many customers still don’t know what their choice is when it comes to energy suppliers. As a result, they often find themselves overpaying for their gas and electricity. To help customers avoid that, Niccolo compiled a comprehensive guide to energy suppliers in the UK.
How are energy suppliers regulated?
Before looking at who the British suppliers are, it is worth taking a minute to understand how they are regulated. With only six energy companies dominating the energy market, it can seem like there is a risk of them abusing their position and introducing unfair, overly expensive tariffs. Luckily, however, UK energy companies are carefully regulated to avoid that.
OFGEM, the Office of Gas and Electricity Markets, is an official government department responsible for regulating the gas and electricity market in Great Britain. The body is recognised by EU Directives, and its role is to protect customers and ensure that the energy prices offered by suppliers are fair. In addition to that, OFGEM helps energy companies lessen their impact on the environment.
Customers who experience problems with their energy suppliers and want to raise a complaint can also seek help from the Energy Ombudsman, which helps settle disputes over energy bills and unfair treatment. In order to submit a complaint to the Ombudsman, however, first customers need to try to resolve the issue with the supplier.
Best and worst energy companies
- Which?
Which? is a company that promotes informed consumer choice when it comes to purchasing essential services such as electricity and gas. Each year Which? conducts a UK energy satisfaction survey that covers 25 suppliers in Great Britain. The study illustrates the opinion of more than 7,000 energy customers. Keep reading to find out what the key findings were.
Which energy companies perform the best?
Which? assessed the suppliers’ performance in several areas:
- Accurate Bills,
- Clear Bills,
- Customer Service,
- Complaints handling.
Based on the answers left by customers, Outfox the Market had the highest score overall. Octopus Energy placed second. The two companies with the lowest scores were Scottish Power and Npower. That proves that often smaller companies can offer better, more competitive services than the ‘Big Six’ suppliers.
How do people contact their energy suppliers?
Nowadays, energy companies offer several ways in which customers can contact their Customer service teams in case they have any queries or problems. As Which? revealed, the most common ways to contact the suppliers are:
| Way to contact the supplier | The proportion of respondents who use it |
| Phone | 25% |
| 20% | |
| Live chat | 12% |
| Enquiry form online | 9% |
| Suppliers’ app | 8% |
| In-person visits at the office | 5% |
| Text message | 4% |
| Letter | 3% |
| Social media | 3% |
- Energy UK
Energy UK is the trade association for the energy industry that brings together more than a hundred members. Each year it looks at what has been happening in the energy sector and it identifies trends and changes in the industry. Here are some key findings from Energy UK’s report published in 2020.
Key figures of 2019:
- Carbon emissions in the power sector have been reduced by 72% since 1990.
- Around £13 billion were invested by the UK energy sector.
- The energy industry provided 738,000 employment opportunities.
- Around 54% of power was generated from low carbon or renewable sources.
- Actors operating in the energy industry dedicated around £770 million to support vulnerable customers.
Decarbonisation and net zero
In the report, Energy UK looked at what actions the energy sector undertakes to achieve net zero goals. The main findings were:
- In 2019, the power sector managed to decrease its emissions the most compared to other sectors.
- In 2019, renewable energy sources generated 119 TWh of power, which represents 37% of all energy generation.
- In 2019, the UK managed to run 18 consecutive days without using coal.
- In 2020, the UK managed to run the record of 68 consecutive days without using coal.
- In 2019, the energy sector invested £12.6 billion in power and gas.
Supporting customers
In 2019, the energy sector delivered outstanding customer service and aimed to protect the most vulnerable customers, providing them with additional assistance. As a result of that, the number of complaints decreased by 9% compared to 2018.
Energy UK reports that 78% of customers expressed their satisfaction with their energy supplier. Moreover, customers started being more active in the energy market and the number of customers who switched their supplier was the highest since Energy UK started keeping track of it.
Suppliers have been promoting innovation and assisting customers with smart meter installations. In fact, 2019 saw around 4.5 million smart meters being installed. Helping customers switch to smart meters is a crucial step towards achieving net zero by 2050.
3. OFGEM
As an independent energy regulator, OFGEM regularly analyses what is happening in the energy market. Each year it publishes reports on the state of the energy market that reveal key facts in several areas. Have a look at the findings from the 2019 report.
| Aspect of the energy industry | Key facts |
| Competition | 20% of customers switched suppliers between July 2018 and June 2019 £260 represents the amount that customers could save if they switched to a different tariff 49% of customers have never switched their supplier 53% of customers were on a default tariff |
| Affordability and Vulnerability | £1,184 represents how much a typical customer has to pay for their dual-fuel energy bill 11% of all households in England are fuel poor 6,500 winter deaths that can be linked to people living in extremely cold homes |
| Decarbonisation of Energy | 50% represents the percentage by which carbon emissions in the energy sector have fallen between 2010-2018 There was a 35% increase in the market share of electric cars in the UK from 2017 to 2018 Emissions in the transport sector have fallen by 2% between 2010-2018 |
| Security of Supply | There have been no gas deficit emergency measures deployed this century The current underlying peak demand for electricity is 60GW National Grid system balancing costs £1.19 billion in 2018/2019 The maximum demand for gas during winter 2018/2019 was 403 million cubic meters |
| Energy Networks | There was 11% reduction in the number of power cuts that happened in the UK over the last 5 years the duration of an average power cut has fallen by 9% since 2015 64,100 fuel poor homes have been connected to gas grids since 2013 The carbon footprint of electricity network companies was reduced by 850,000 tonnes since 2015 The average customer service scores for gas and electricity distribution companies between 2017-2018 was 8.8/10 |
How to choose an energy supplier?
With so many suppliers operating in the UK, many feel overwhelmed when having to pick one. Each customer, whether domestic or business one has their own individual needs, and so they might require different energy tariffs. Moreover, each supplier offers unique energy contracts, fuel mixes, and prices. That’s why when choosing a supplier, you need to think about your energy consumption habits, as well as about your energy requirements. Based on that, you can find the best tariff for you or your business.
This guide will help you make an informed decision and will give you the chance to find out more about the supplier you’re considering switching to.