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Michael Edmondstone

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Small is Beautiful for Energy Supply

Posted: 10/05/2012 00:00

I have recently changed my energy supplier after staying loyal to one of the 'big six' for years. It's not that the supplier needed changing because of a gross lack of quality but, at the same time, I didn't just stay with them because they were particularly great. No, the real reason I changed is because I realised there is an alternative.

We've all seen the news - ever since the 2008 credit crunch there have been countless stories about fuel poverty, rising prices, dangerous monopolies and an apparent total lack of compassion for the average Joe. Every winter sees pensioners being interviewed, telling a quietly nodding reporter that they have to choose between eating and heating.

It's a bit nauseating. And it's tempting to get all Che Guevara on the energy barons: forcing a redistribution of wealth so Deirdre can eat well AND sleep in comfort. But even red Ed Miliband and his trade union bankrollers aren't going to try taxing EDF or British Gas into a corner. They wouldn't dare.

But there's power in the hands of the consumer. Smaller energy suppliers offer a viable alternative to the usual suspects and they often work out at far better value. Research from price comparison site uSwitch found that 32% of consumers would consider moving to a smaller supplier for better customer service and 28% would change for clearer bills.

In fact, only 19% were found to be content to stick, with the big six.

Furthermore, Which? Released a customer satisfaction survey for energy suppliers that found the top five spots have been taken by smaller suppliers, with the big six languishing at the bottom. Good Energy - a 100% renewable energy provider- was top for the third year in a row.

So why aren't more people taking the plunge? Well, people fear change, right? And perhaps they think that smaller suppliers couldn't offer the same quality. Or that smaller suppliers might crumble, leaving them in the lurch. Or that smaller suppliers might not be trustworthy. Or perhaps that smaller suppliers are too, well, small?

Ann Robinson, Director of Consumer Policy at uSwitch said: "Unfortunately, when it comes to energy suppliers, many consumers are caught in a trap - they're unhappy with the big six, they like what smaller suppliers have to offer, but they're too frightened to try one out."

Fear not! Mrs Robinson continues that: "Their fears are completely unfounded and could be laid to rest with the right education and reassurance."

Remember, If an energy supplier, whatever the size, were to go put of business, Ofgem, the government energy industry regulator, would take control and ensure customers were automatically transferred to a different supplier.

Mrs Robinson again: "The fact is that smaller suppliers offer competitive prices and a genuine alternative to being with the big six."

In other words, if you're not happy with your supplier, or you're with a big supplier and fancy trying to help facilitate change away from the monopolies of the wealthy, then switch! Switch your supplier and help keep the big six on their toes.

It's been my mini-revolution. My way of sticking it to the man and taking the power back. Not only does my supplier favour green energy over brown, but it helps distribute money to a smaller company that might, just might, make the big six more competitive. And do you know what? My bills have never been this easy to understand.

 

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I have recently changed my energy supplier after staying loyal to one of the 'big six' for years. It's not that the supplier needed changing because of a gross lack of quality but, at the same time, I...
I have recently changed my energy supplier after staying loyal to one of the 'big six' for years. It's not that the supplier needed changing because of a gross lack of quality but, at the same time, I...
 
 
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09:29 AM on 05/12/2012
get a log burner then you can expect the fraud boys around ,we have a doorbell and live in a bungalow
but no they came at 7 o clock on a winters night banged on our new door with the butt of a torch and demanded to see the meter ,i told them to go away ,he said we will be back with a warrant i said good ,i phoned Scottish and southern who did not admit to anything and then i phoned the police .

Apparently they have these heavy boys if they think you are fiddling the gas !
02:08 PM on 05/12/2012
They don't need to knock on my door. Like many others the meter is outside the front.
09:20 AM on 05/12/2012
It dont matter how big or small the company is the idea is to ring as much money as they can out of the customer while appearing to be biodegradable lead free and non violent !
01:25 PM on 05/11/2012
The bigger a company is/gets,maybe there is greater indifference to their staff,who then reflect that in greater indifference to the customer.Maybe where heirarchies are complex,inertia is greater,and responsiveness to change less-dinosauresque in their blundering about.
Economies of scale and the need to change and evolve can get lost in the acres of management space,with workers' disenfranchisement through greater randomisation mushrooming in these voluminous acres.
lastpost
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12:30 PM on 05/11/2012
"there is an alternative."
Is it joining a cooperative? So that with a massive client base, it can seek out the best deal and also dispense with the unproductive paperwork and 'phone calls. Providing of course, that active legislation is in place to prevent energy suppliers forming a cartel to frustrate that encouragement of the most efficient.

"why aren't more people taking the plunge? Well"
why hire a chauffeured car, and do the driving yourself? A one-stop energy shop is what’s wanted. Strength, and savings, through numbers.

"Their fears are completely unfounded"
If the customer service of some service suppliers is anything to go by. Dealing with two providers could prove exponentially stressful. One such company sent bailiffs to a client for non-payment of electricity bills. Except, she was on a pre-paid meter. The illegally confiscated goods were only returned when police were alerted to a potential suicide case.

"The fact is that"
more and more companies are treating customers with utter contempt, and getting away with it.

"sticking it to the man and taking the power back"
would require a system of governance that had some regard for its charges and their care. I don’t see one. Do you?
10:39 AM on 05/11/2012
This is so true - I recently started looking into smaller providers too after awful experiences with some large companies. I've heard really good things about Good Energy - so it's great to see that they're being picked up on by others. Food for thought!