Government Ministers To Inject More Competition Into The Energy Market

Later this month Ed Davey, the Energy and Climate Change Secretary, will launch a new campaign urging customers to shop around for the best deal on their energy supply.

business gas buyingThe new energy switching drive will come weeks after the Which? consumer group reported that the ‘Big Six’ energy firms  hadn’t cut their prices in line with broader wholesale costs. Which? executive director Richard Lloyd said: “Our analysis places a massive question mark over how suppliers have been setting prices over the last two years.”

The Uncompetitive UK Energy Market

The report found that although smaller firms were offering more competitive rates, these firms are unable to exert pressure on the largest providers because businesses and consumers are reluctant to change their energy provider.

For a competitive marketplace to flourish, businesses and individuals need to be fluid between the cheapest suppliers. However, many purchasers are reluctant to change providers because they aren’t sure where to get the best deals, or they think switching will involve lots of hassle, or simply because they don’t know how to switch.

Last month Mr Davey claimed the Government had “introduced more competition in the energy market and made it much quicker for people to switch energy supplier”.

“Industry is delivering on my challenge so now my challenge is for more consumers to take advantage. There’s never been a better time to shop around, switch and save money faster than ever before,” he said.

By softening the barriers between suppliers, the Government has injected some life back into the energy market. But there is still more to be done. Business purchasers need to become more energy-aware. It is hoped this new campaign will make the switching process clearer – so customers can see how easy it really is.

Customers Can Make Energy Competitive Again

We need a broader attitudinal shift towards energy customer pro-activity. Nobody should wait around for the hegemonic ‘Big Six’ to gradually reduce their prices as and when they feel like it – instead they should get out and seek a better deal elsewhere. Business energy users could save by making conscious and smart purchasing decisions.

At Business, we work hard with our customers to secure the best deal for everyone. Get in touch today to find the perfect energy deal for your business.

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