You are here: Home - Household Bills - News -

Small energy suppliers take the lead with cheapest deals

Written by:
With five of the Big 6 energy suppliers hiking up prices, small energy providers are stealing the show by launching cheap deals.

According to comparison site, the Co-operative Fixed March 2015 tariff is now the cheapest fixed price plan on the market costing consumers £1,168 a year, making it £224 a year cheaper than the average ‘Big 6’ standard plan.

The new fixed-price plan now knocks fellow small supplier, Ovo Energy, off the top spot, after it spent a week in the spotlight with its New Energy + Ovo Just Reward plan at £1,175 a year.

Co-operative Energy’s deal is £7 a year cheaper and is fixed for four months longer, without an exit penalty.

In contrast, with Ovo’s plan customers will have to pay £30 per fuel if they switch before the fixed period is over.

Tom Lyon, energy expert at, said: “To see another small supplier at the top of the ‘best buy’ table is fantastic news and a welcome indication of what real competition could achieve in this market. The deals are there and it’s in the hands of consumers to snap them up and fan the flames of competition. Only with a healthy competitive market will we see suppliers battle it out to offer the cheapest plans, superior services and to drive costs and inefficiencies down.” 

The third cheapest fixed price tariff comes from a small supplier too, First Utility. Its tariff costs £1,178 a year matching the cheapest big six tariff on the market, E.ON’s Energy Fixed 1 Year.

Meanwhile, another small supplier, Spark Energy continues to reign as the cheapest overall supplier with its Advance 2 tariff, costing £1,116 a year – £52 a year cheaper than Co-operative Energy’s deal.

However, consumers should note that this is a variable plan and so it won’t protect from price rises. It also requires payment in advance, which may not be suitable for everyone.

Lyon added: “In recent weeks, we have seen the number of consumers switching to smaller suppliers soar from 17% to 29%. This is encouraging, but many are still reluctant to take the leap. The good news is that their fears are unfounded and, with the right education and support, consumers could have the confidence to try out a new supplier and benefit from one of these competitive new deals.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
London open: Miners lift FTSE 100 higher early on

UK markets edged higher in early trading on Friday following a quiet session the day before, with volumes expected to...