Should You Switch To A New Energy Supplier?
If you’re thinking of switching energy supplier, you will have a much wider choice of providers than you may have had in the past.
Recent years have seen a number of new energy suppliers enter the market increasing the options available to consumers.
New suppliers have challenged the established large energy suppliers, often promising lower rates, better customer, and greener energy.
With Love Energy Savings, you can compare a huge range of suppliers, from small independent suppliers to the big 6 energy companies, to ensure you can find the very best energy tariff for you.
Is Switching To A New Energy Supplier Risky?
One of the most common reasons people give for not switching to a new energy supplier is that it is too much of a risk.
However, measures have been put in place by the energy regulator Ofgem to protect customers who switch to a new energy supplier.
If a new energy supplier was to go out of business, your supply would be continued with a new supplier selected by Ofgem (known as a Supplier of Last Resort). Your energy supply and any credit balance you had would also be protected should your supplier go out of business.
If you are moved to Supplier of Last Resort, you are free to switch to another supplier of your choosing at any time with no exit fees payable.
What are the benefits of new energy suppliers?
- New suppliers will often offer cheaper tariff than those offered by the big 6 suppliers
- New suppliers are regularly found to offer better customer service than traditional suppliers
- New suppliers lead to more tariff options including green energy tariffs
What are the drawbacks to new energy suppliers?
- A new energy supplier is more likely to go out of business than an established provider
- New energy suppliers that grow quickly may struggle to cope with a sudden increase in customers
- It can be difficult to find information on the newest suppliers prior to switching
Who Are The Leading New Energy Providers?
A number of new suppliers have grown rapidly over recent years to become some of the most popular options for customers.
These range from smaller providers with tens of thousands of customers to larger new energy suppliers with over half a million customers.
Here, we look at some of the new energy suppliers to enter the market.
Bulb Energy launched in 2015 offering simpler energy for customers with just one tariff providing 100% renewable electricity and carbon offset gas.
Bulb has grown quickly since launching and now has over 1.5 million customers, making it one of the largest new suppliers on the market.
Launched in 2016, Octopus Energy is another fast-growing new energy supplier, offering 100% renewable electricity and carbon offset gas.
They now supply over 1 million homes in the UK and were voted as a Which? Recommended Provider in 2020 for the third year in a row.
So Energy is a 100% renewable electricity provider founded in 2015. They were voted as a Which? Recommended Provider for the first time in 2020.
So Energy claim to use the latest technology to keep costs down and pass on savings to their customers.
One of the newest energy suppliers on the market, Pure Planet were founded in 2017 and now have around 30,000 customers.
They are a digital only energy provider and offer just one variable rate direct-debit tariff. Along with Octopus and So Energy, Pure Planet was voted as a Which? Recommended Provider in 2020.
Should I Switch To A New Energy Supplier?
With new energy suppliers growing in popularity, you may be wondering whether it is worth switching to one of the new providers.
Unfortunately, there is no one size fits all approach when it comes to comparing energy suppliers. If you are looking for benefits such as green energy and digital billing, a new supplier could be a good choice for you.
If customer service is important to you, new and independent energy suppliers often score highly in customer satisfaction surveys. In fact, all 3 Which? Recommended Providers in 2020 were founded within the last 5 years.
However, you should bear in mind that if your supplier were to go out of business, you may be transferred to a provider chosen by the energy regulator Ofgem.
Compare New Energy Suppliers With Love Energy Savings
As more energy suppliers enter the market, it can be increasingly difficult to find the very best tariffs available when comparing energy prices.
With Love Energy Savings, you can compare a wide range of providers from new, independent suppliers to the big six energy companies.
Once you’ve found the best energy deal for you, the switching process is simple. Our energy experts will handle the entire process to cancel your current contract and get you set up with your new energy provider.
51% of customers who applied to switch with Love Energy Savings could save at least £250 on their energy bills.
To find out how much you could save, simply click the button below to compare the latest energy tariffs.
Are new energy suppliers always the cheapest?
The cost of your gas and electricity will depend on your type of property, your location, and the type of tariff you are looking for.
Although many new suppliers aim to offer cheaper rates than established energy companies, they will not always be the cheapest available for you.
The quickest way to find the cheapest tariff available is to compare energy prices with Love Energy Savings.
What happens if my supplier goes out of business?
If you do switch to an energy supplier that goes out of business, you will be protected by the energy regulator Ofgem.
If there is no takeover of your energy company, Ofgem will move you to a new supplier known as a Supplier of Last Resort to ensure your energy supply continues. Any credit balance you have will also be protected during this process.
As you will be on a ‘deemed’ contract with your new supplier your rates may be higher. However, you can switch to a supplier of your choice at any time with no exit fees payable.
What is the Energy Switch Guarantee?
The Energy Switch Guarantee ensures that domestic customers can easily switch between energy providers without interruption to their energy supply.
Under the Energy Switch Guarantee:
- You are guaranteed a reliable and hassle-free switch in 21 days
- You can use your existing energy provider right up until your switch is completed
- You are guaranteed that you won’t be left without gas or electricity
- Any credit from your energy account will be refunded within 13 days of your final bill
What is green energy?
Many new suppliers offer customers green and renewable energy tariffs. Most green energy suppliers will provide 100% renewable electricity and carbon offset gas.
Any electricity you use will be replaced with renewable electricity fed into the national grid by your energy supplier. This means that as more people switch to green tariffs, there will be a higher percentage of renewable electricity in the national grid.
If your supplier offers carbon offset gas, they will aim to make up for the gas you use by investing in carbon reduction projects and paying to plant trees.