Small energy suppliers react postively to Ofgem proposals

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

A number of independent energy suppliers have welcomed Ofgem's recent moves to improve competition within the energy market.

The industry regulator outlined a variety of measures aimed at making it easier for the small independent suppliers to compete with the more established companies.

Amongst the measures, which were highlighted on Wednesday (June 12), are a 'market maker obligation.' This particular measure will obligate the UK's big six energy suppliers ( EDF Energy, SSE, ScottishPower, nPower, British Gas, e.ON) to make the prices at which they buy and sell power known two years in advance.

Co-Operative Energy's Ramsay Dunning spoke positively of Ofgem's proposals.

He said: "In forcing Britain's biggest energy generators to publish the prices at which they are willing to buy and sell electricity for two years ahead, Ofgem can bring to an end the unfair practices often used to effectively block small suppliers out of the wholesale market. We also welcome to decision to impose fines on those who do not trade fairly."

Good Energy's founder and chief executive, Juliet Davenport, reacted similarly, stating: "This is a clear signal from the market regulator of its intention to shake up the energy market and drive competition by promoting the interests of independent suppliers.

"We know that a more competitive market brings better deals for consumers who increasingly look to independent, green providers like Good Energy.

"These proposals should give a broader range of power trading options to Good Energy that will create new opportunities for us to purchase renewable electricity further ahead of time," she added.

The big six energy suppliers currently work alongside the government as part of its Green Deal initiative.

Under the initiative, homeowners can apply for a loan of sorts to be put towards energy-saving home improvements - including the installation of new boilers and draught-proofing. Rather than having to pay for these measures straight away, though, homeowners pay for them in installments instead.

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