The big six: what does the domination of the energy market mean for businesses?

With recent rises in business energy prices, and government help for businesses diminishing, a Newcastle-based energy claims expert is addressing concerns over the dominance of the energy market by only a few suppliers.

Energy and legal experts, Business Energy Claims, is highlighting the issues with a handful of firms supplying the majority of the UK, and the resulting price increases and uncompetitive tariffs.

What are the dangers of a dominated market?

With just six suppliers providing the majority of UK energy supply, there is the potential for this market dominance to result in unrealistic and unaffordable tariffs, with suppliers often even buying and trading energy between one another.

The UK’s economy is built on the concept of competition, meaning that the more companies there are in a market, the better deals they will need to offer to secure contracts with potential customers.

Whilst there are some smaller suppliers in the energy market, we’ve already seen more than 25 firms collapse, leading to the market domination by the larger, more sustainable, suppliers.

This has made it almost impossible for non-domestic customers to switch suppliers and secure better deals, leading to many businesses incurring huge financial losses and being tied into extortionate energy contracts.

Should I switch to a different or smaller supplier?

Smaller suppliers can represent a perfectly valid alternative to the bigger firms, with deals often on par with or cheaper, with a more comprehensive level of customer service on offer.

However, since the current energy market crisis began, many businesses are unsure and uncertain about switching their energy supplier, even if they could potentially make a saving in the process.

This is ultimately due to fears that smaller suppliers may go out of business in the near future, coupled with a lack of trust in lesser brands and concerns that the service will not live up to that of the big six suppliers.

Regardless of your supplier, it is increasingly important for business energy customers to ensure that they are being offered the appropriate tariffs and are being charged correctly once their contract starts.

This is especially true amongst small and medium businesses, where energy suppliers are often charging too much and left unchallenged.

Have you been mis-sold your energy contract?

Business Energy Claims are urging businesses to hold their suppliers to account and continue to challenge any aspect of their energy contract that does not sit right with them.

The Newcastle-based energy litigation specialists are highlighting the need for businesses to question the way in which their energy contracts were sold and handled, with an estimated 2 million UK businesses potentially entitled to compensation for energy mis-selling.

Head of Claims, Hannah Stewart, said: “By monopolising the energy market, the big six energy suppliers are essentially ensuring that businesses keep their supply tied to them rather than sourcing new deals elsewhere that may be more beneficial.

“It is always worth undertaking a comprehensive review of what rates are available with all suppliers, regardless of their size, so that businesses can make an informed decision regarding who to contract with next.

“If you are dissatisfied with the service you have received from your supplier, whether they be one of the big six or not, please contact Business Energy Claims to see if we can help you in any way.”

Business Energy Claims has a team of energy and legal experts helping businesses to recover hidden commissions and losses from the mis-selling of energy contracts.

If you believe you’ve been mis-sold your energy contract and think you’re entitled to compensation, call 0800 689 4259 or get in touch.

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