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Ian Wright Until around 2014, six major companies supplied energy to over 90% of the UK population, known as the ‘big six’. Over the years, other smaller companies appeared in the UK’s energy market so the ‘big six’ now refers to the largest companies.
The Office of Gas and Electricity Markets (Ofgem) estimated that, by 2019, the big six held 70% of the market after customers had switched over to smaller energy suppliers (charts now archived).
Who are the big six?
The big six energy suppliers are still the largest companies in the UK’s energy sector today. Details on each and their customer numbers are listed below:
British Gas
British Gas is the largest energy company and the greenest supplier of the six. It has now become a branch of Centrica PLC, although in Scotland it is known as Scottish Gas in and in Wales as Nwy Prydain. Its main offices are located in Berkshire. The company supplies gas to 15 million UK households, with 6 million electricity customers.
EDF Energy
This is the British branch of the French company EDF, supplying more than 5.6 million customers. EDF Business Energy has the largest low carbon electricity production with the majority of its supply generated from nuclear sources.
E.ON
E.ON, formerly Powergen, is well known for business and private power supply, currently serving 5 million customers. The company is renowned for its innovative approach and advanced technology focused on harnessing green energy.
Npower
Npower is the smallest of the big six energy suppliers. Outside of domestic supply, it focuses on expanding wind and hydroelectric power. Npower is now a subsidiary of E.ON, although they continue to operate separately. It also cooperates with Sainsbury’s Energy.
Scottish Power
Scottish Power is the next largest company above Npower and one of the longest-running provider groups in the UK. It supplies electricity and gas to over 5 million UK households. This is a leading company in renewable energy, after recently closing down its gas and coal plants.
SSE
Scottish and Southern Energy (SSE) is the second-largest supplier in the UK and the second-best provider of renewable power. In 2020, it was bought by supplier OVO but continues to operate under the SSE brand. It specialises in hydropower and electric power.
Benefits of choosing one of the largest energy suppliers?
The energy industry has become competitive with new smaller companies supplying energy at low prices. Nevertheless, the big six still have adapted to the drop in gas and electricity prices and continue to dominate the energy market. They have years of experience and they know how to keep their customers happy.
The six largest energy suppliers offer some of the best business energy tariffs for their customers, both in terms of value and additional service extras. They offer a full range of commercial services (from basic fixed prices and flexible 30-day rolling plans to renewable energy solutions) as well as domestic energy services.
Are smaller energy companies worth it?
There has been a rise in small energy suppliers in the UK, some of them offering higher levels of customer satisfaction than the largest energy suppliers. They may also offer cheaper rates for domestic and commercial electricity and gas usage.
The main concern of most people when thinking about switching suppliers to smaller companies is what to do if they go out of business. Ofgem is there to protect consumers in such a scenario. When the electricity providers can no longer serve you, you will then simply be switched to a different company that can. Under no circumstances will you be left without a power supply.
It is always useful to do your research about the different companies that exist in the UK, for example, by checking their online customer reviews. You can find more information about electricity rates here.
Is it difficult to switch energy supplier?
It is common for people to feel reluctant to switch suppliers due to the misconception that the process is time-consuming and complicated. On the contrary, switching energy suppliers is simple and super fast.
All companies deliver their energy in the same way, thus, there is no need to change the pipes and cables of your property if you want to use a different provider. The only difference is the name of the company and the price.
If you wish to switch suppliers, all you need to do is go to Business Energy UK and provide your postcode and power usage. Then, you will be presented with a list of the best available gas and electricity deals. Our online energy comparison tool helps you decide which energy supplier works best for you and makes the switching process straightforward and fast.
Frequently asked questions
You can save hundreds and sometimes thousands of pounds by switching business energy provider. It’s important to keep a handle on commercial expenditure, particularly energy bills, for three reasons. First and foremost, bills often make up a large chunk of overall business costs. Secondly, businesses generally use much more energy than domestic households. And thirdly, businesses can reinvest their savings into other areas, helping them grow and become more profitable.
You can compare deals in under 60 seconds using Business Energy UK, so you can select a new business energy supplier quickly. This is just the start of the process, but the majority of work is taken care of by the energy companies behind the scenes. It typically takes between four and six weeks to complete the switch. To avoid any unnecessary delays, ensure you’ve provided all the information your new supplier needs early on.
Standing charges involve a daily payment that remains the same, no matter how much energy is used, and most business energy contracts include them. Although standard charges are very common, some suppliers offer tariffs with no standing charges, which can be useful if you run a seasonal business or do not open every day.
Gas and electricity are not packaged together in business energy tariffs, so there’s no equivalent to the dual fuel offerings that you are able to choose with your domestic energy deals. Business energy suppliers will instead offer separate energy quotes and draw up separate contracts for business gas and electricity. It’s a good idea to choose the same contract length for both, making these easy to manage.
Charities and nonprofits are eligible for a 5% discount on their energy bills, reduced from the full rate of 20%. You may get a discount for paying via direct debit.
The Climate Change Levy is a green tax imposed on all businesses that consume energy in the UK. This tax promotes improved energy efficiency. Any business in the UK has the opportunity to participate in the Climate Change Agreement Scheme, which allows them to benefit from lower rates.
Climate Change Levy (CCL) Rates:
| Taxable commodity | Rate from 1 April 2022 (£ per kilowatt hour (kWh)) | Rate from 1 April 2023 (£ per kWh) | Rate from 1 April 2024 (£ per kWh) |
|---|---|---|---|
| Electricity | 0.00775 | 0.00775 | 0.00775 |
| Gas | 0.00568 | 0.00672 | 0.00775 |
Source: GOV
Transitioning to a different business gas or electricity provider is an uncomplicated procedure, and there will be no interruption in your gas and electricity services. When you change your energy provider, you’re merely altering the company that oversees your supply. The infrastructure, including all cables and pipes, will stay unchanged.
Utilising a multi-site meter allows you to consolidate your business energy expenses into a single invoice. This enables you to manage the gas and electricity bills for multiple buildings under one energy contract.
Multi-site meters are an excellent tool for business owners, aiding in time and cost savings by eliminating the need to juggle numerous energy contracts.
There are several distinctions between domestic and business energy contracts. Primarily, business energy contracts are more rigid, and the penalties for early termination are significantly higher.
A business energy provider procures the precise quantity of gas and electricity anticipated for each business energy contract. Given that businesses consume more energy, the provider would incur losses if businesses prematurely terminated their contracts without settling the necessary payments.
On the other hand, switching domestic energy is relatively simpler due to lower consumption levels, and contracts typically become flexible after the conclusion of a fixed-rate agreement.
Dual fuel tariffs are exclusively for residential customers. Businesses are required to transition their gas and electricity services independently.
While businesses can choose the same provider for both types of fuel, each must be switched individually. If you opt to contract both gas and electricity from the same supplier, you might have the opportunity to negotiate a more favourable energy deal.
To get an accurate quote when switching business energy providers, it’s crucial to have the correct information at your disposal. There are also other factors to consider. To ensure a smooth transition, even if you’re just checking the latest energy rates, follow these steps:
Terminate your current contract
Comparing business energy prices online has never been more straightforward. Once you’ve identified the right tariff, you’ll need to end your existing contract. Keep in mind that gas and electricity must be switched separately – a useful tip is to conduct your commercial energy comparison all at once. Synchronizing your contracts for the same duration will save you time in the future.
If you fail to terminate your contract, many commercial energy providers will default you to costly out-of-contract rates. Providers are not always diligent about sending renewal notices (unless you’re categorized as a micro-business).
Find your meter registration numbers
When comparing business energy quotes, having your Meter Point Reference Number and Meter Point Administration Number (MPRN & MPAN) available will ensure you receive accurate rates based on your actual usage.
These numbers should be visible on a recent energy bill. If you don’t have these readily available, our smart comparison engine can often retrieve this information for you.
Your company information
You’ll need some basic company details so our business energy specialists can find you an excellent deal. The switching process can be entirely online at your convenience, or our team is just a phone call away if you need any help.
We’ll typically require the following information:
- Business address and postcode
- The desired start date for your new energy deal
- Energy meter numbers
- Your annual energy consumption
Most of the information you need will be on your recent bill.
Switch with confidence
There’s no obligation to switch business energy providers with us. We aim to help you find the deal that’s right for you. If you choose to switch with us, you can relax while we manage the process for you.
Daily rate changes
The energy market can be highly unpredictable, and numerous factors can influence the price you pay for your energy usage. Here are some reasons your commercial energy contract could cost more or less:
- The size of your business – businesses with larger consumption pay more annually for their energy usage but receive discounted unit rates. Businesses with lower consumption will pay higher unit rates.
- Your energy tariff – there’s a broad range of tariffs with different pricing models – for example, Economy 7/10 (cheaper rates at night), no standing charge tariffs, and green energy tariffs all have different rates. Each has its advantages depending on your company’s gas and electricity usage.
- Energy suppliers – while generally guided by wholesale market prices, different suppliers have different pricing models, making some more expensive than others.
- Wholesale market prices – the wholesale market is always fluctuating, and suppliers use this as a guideline for their pricing models. Significant global events, weather, and other factors can impact the wholesale market, and prices will be adjusted accordingly.
Most of the information you need will be on your recent bill.
In 2023, business energy costs have seen a slow decline, yet they remain significantly above the norm. The ongoing Ukraine conflict continues to influence these prices.
Here’s an explanation of how this remote conflict escalates business energy costs:
Dependence on Russian gas – Over the past two decades, Europe has grown heavily dependent on the inexpensive natural gas provided by Russia. As the world’s leading gas producer, Russia exports most of its gas to Europe via pipelines.
Economic sanctions – The Ukraine conflict has led to economic sanctions between the West and Russia. These sanctions have imposed severe limitations on gas supply to Europe. To compensate for this, Europe now depends on costly imports of Liquid Natural Gas from the Middle East and America, which in turn escalates the wholesale gas price.
Gas usage for electricity production – The British National Grid depends on imported natural gas from Europe, which is then converted into electricity using gas-fired power stations. The rise in gas prices directly increases the cost of electricity.
In the first half of 2023, business energy costs have seen a slow decline due to a relatively mild winter and as European companies have adapted to use gas more efficiently and increased their renewable electricity production.
The Energy Supply Ombudsman, more formally known as the Ombudsman Services: Energy, is an independent body in the UK that settles disputes between consumers and companies in the energy sector. It offers a free and impartial service to customers who have been unable to resolve a complaint with their energy supplier or network operator.
The typs of complaints that the Energy Supply Ombudsman can deal with include billing issues, problems with energy meters, switching problems, and customer service complaints, among others.
If a consumer has a complaint about their energy service, they should first try to resolve it with the energy company directly. If the issue is not resolved to the consumer’s satisfaction after eight weeks, or if a deadlock letter has been received, they can then escalate their complaint to the Energy Supply Ombudsman.
The Ombudsman will investigate the complaint and make a decision based on the evidence provided by both parties. If the consumer accepts the Ombudsman’s decision, it becomes binding on the company involved, which means they must take the actions recommended by the Ombudsman, which could include an apology, remedial action, or a financial award.
The Energy Supply Ombudsman is authorised by the UK regulator, the Office of Gas and Electricity Markets (Ofgem), and its services are free for consumers.
The easiest way to reduce your usage costs is to switch to a cheaper supplier. You can use our online comparison services to compare the prices of all providers in the UK. Simply go to Business Energy UK and add your postcode and your power usage into our comparison tool to receive a list of the best deals available on the market.
In addition to the tariff prices, you can also see the customer satisfaction rates of each supplier and information about how much green energy they use.
If you haven’t changed suppliers for a while then maybe it’s time to do so. There are lots of great deals on the market you may be missing out on; or even worse, you could be overpaying for your gas and electricity. You can use our supplier comparison tool to find the best deals.
Another reason that may urge you to look for another energy supplier is renewable sources. There are now more options for renewable energy available. If you are environmentally responsible, you may wish to switch to a provider that generated their power from a greener source.
