Big Six In Hot Water for Failing to Pass On Domestic Energy Savings
It hasn’t taken long. No sooner have we completed the first week of 2015, that we have the first reports of the Big Six energy suppliers in trouble for letting down home energy customers. 2014 saw all sorts of negative press for British Gas, E.ON et al for misdemeanours ranging from price hikes to mis-selling and it looks as if it will be much same over the next twelve months.
With more and more domestic energy customers deciding to ditch the Big Six for the up and coming smaller, independent suppliers this news will come to the chagrin of many involved with the larger firms as they have vowed to clean up their act.
Big Six Slammed Once Again
As one of the UK’s most prominent energy comparison sites, we are in full agreement with our counterparts who claim that bills should fall by as much as £140, in order to pass on the savings the suppliers have been enjoying due to the drop in wholesale energy prices.
The issue has even been addressed by the chancellor George Osborne, who has stressed that any companies profiting from the decline in oil prices should be ensuring that they are passed on to the customer. If these firms do not comply then an investigation by the Treasury could be imminent.
When the wholesale prices first dropped, petrol retailers were the first to come under fire for not representing the reductions in their prices. Petrol stations across the country have since rectified the situation, resulting in the widely reported lower prices that can be found. Now it is the turn of the energy suppliers to feel the heat as to date, no standard rate energy tariffs have been lowered for domestic customers.
Why Haven't The Savings Been Passed On?
Wholesale electricity and gas prices have fallen by around 15% and 30% respectively according to many energy price comparison sites, so there should surely be no reason why at least some of these savings should be enjoyed by home energy consumers. The smaller energy firms seem to have cottoned onto this and have been able to offer customers dual energy bills for under £900, which is unprecedented. Big Six customers are currently paying around £1,200 for the same amount of energy on standard rate contracts.
If you are currently a Big Six customer, then take a look at our at a glance table of standard tariffs. This compares the cheapest overall product when paying by direct debit with the standard tariffs of each of the Big Six suppliers. We have used the average energy usage of a UK home, which is 3,200 kWh of electricity and 13,500 kWh of gas. Thanks go to energyshop.com who conducted this research and published their findings.
Following this research, the aforementioned energy price comparison service deduced that customers could see their domestic energy bills fall by as much as £140 a year if these savings were passed on by the Big Six Energy Suppliers.
Exodus From The Big Six Set to Continue...
We have been reporting on the exodus of customers from the Big Six suppliers to the smaller, independent firms for some time now and this will surely add more fuel to the fire. Better prices, more flexible contracts, superior online options and other factors have all contributed to more customers than ever leaving the bigger energy providers. Continued refusal by the suppliers to reduce their prices will surely result in these trends continuing to develop.
Although the Big Six are clearly not passing on these savings to home energy customers, this does not necessarily mean that they are not the cheapest supplier for you. You can find out which tariff and energy supplier is the cheapest for your household by using our free, no-oblligation comparison engine. To do so right now and take the first step to cheaper gas and electricity bills, simply put your postcode into the box on the right hand side of this page or just below. There has never been a better time to get yourself onto a cheaper energy contract, so why wait to save money for you and your family!?