Welcome back to the Big Six!

Graywisdom

So, today, I see another three small energy suppliers have gone to the wall.
Give it a few months and we will be back to just the "Big Boys" as it was before
OFGEM liberalised the market.
I know that the massive increase in natural gas prices could not have been predicted
but surely somebody in the organisation would have used the "What If" scenario when
setting up the regulations.

Streaky_Bacon

The small energy suppliers were able to exist by charging less than the Big Boys, but were not able to insulate themselves against market shock.

So, now we are left with the Big Boys, who have deep pockets and can insulate themselves with large forward contracts, take advantage of the lack of competition, and make their pockets even deeper in the long term.

Probably not something to celebrate.

No doubt more small suppliers will enter the market once the current uncertainty is over.

I wonder how far ahead the Big Boys are buying contracts, what they are paying, and how much they will eventually charge for that energy. Certainly they are not buying all their energy at today's spot prices.

chewyluis

In my experience, energy from the big six is more reliable and efficient. That's why I've always been willing to pay a bit more to the likes of British Gas for a better quality product. You may see the same when you are switched.

MWT

Hopefully though, if there is a return of the smaller players into this market, they will not be allowed to run up large costs for the rest of the suppliers and consumers to cover by offering unfeasibly low tariffs and leaving others to pay for their failures...

JJ_Egan

But who are the big 6 not the same ones as two years ago .

Yes BG smells much better .

Bendo

chewyluis said:

In my experience, energy from the big six is more reliable and efficient. That's why I've always been willing to pay a bit more to the likes of British Gas for a better quality product. You may see the same when you are switched.

 You do realise it's all the same?

Curiousgirl1

chewyluis said:

In my experience, energy from the big six is more reliable and efficient. That's why I've always been willing to pay a bit more to the likes of British Gas for a better quality product. You may see the same when you are switched.

I hope you’ve posted this with your tongue planted firmly in your cheek and don’t actually believe that 🤣🤣

t1redmonkey

I bow to our Big 6 overlords.

JenB79

Streaky_Bacon said:

So, now we are left with the Big Boys, who have deep pockets and can insulate themselves with large forward contracts, take advantage of the lack of competition, and make their pockets even deeper in the long term.

Who says you have to pay silly prices with the big providers? If you go for an 'exclusive' tariff through the likes of MSE CEC or USwitch, then some of the big suppliers will have very competitive tariffs, might not be the absolute cheapest but not far off and certainly far cheaper than signing up directly with them. And of course there's less chance of them going tits up versus the smaller suppliers.

Just to give you an example, I'm with EDF and paying (fixed until June 2022) 14p/kWH for electric and 2.05p/kWh for gas, with a daily standing charge of 27p on both. Tariff is called Simply Online 1 Year Fix Jun21v3 (smart meter tariff)

This was actually an EDF fixed 1 year tariff i signed up to in June 2020  through CEC and came to an end in June 2021 - however they offered to extend it for another year after they were informed i was in the process of switching away - i then cancelled the switch and happily took up their offer. Of course when it comes to renewal time in June 2022, I'm going to get a huge shock wrt prices no matter who I go with but at least i don't have to worry about that for the next 9 months or so.

brewerdave

JenB79 said:

Streaky_Bacon said:

So, now we are left with the Big Boys, who have deep pockets and can insulate themselves with large forward contracts, take advantage of the lack of competition, and make their pockets even deeper in the long term.

Just to give you an example, I'm with EDF and paying (fixed until June 2022) 14p/kWH for electric and 2.05p/kWh for gas, with a daily standing charge of 27p on both. Tariff is called Simply Online 1 Year Fix Jun21v3 (smart meter tariff)

This was actually an EDF fixed 1 year tariff i signed up to in June 2020  through CEC and came to an end in June 2021 - however they offered to extend it for another year after they were informed i was in the process of switching away - i then cancelled the switch and happily took up their offer. Of course when it comes to renewal time in June 2022, I'm going to get a huge shock wrt prices no matter who I go with but at least i don't have to worry about that for the next 9 months or so.

But when you first signed up in June 2020 ,that was quite an expensive tariff ,particularly for leccy. Where you fell lucky ,was getting it extended in June 2021 - better rates than I have from Feb 2021!!

tastyhog

Won't even be the big 6 soon, customers are being consolidated in preparation for nationalisation.