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Moving away from the big six energy suppliers

Updated on February 4, 2016

For those in the know, there are six many energy suppliers in the UK. However in recent years as a way to cut down the profits from these companies, several smaller outfits have launched. The thing is though, are they any better than the big six and is their presence a help of a hindrance on the market as a whole?

A look at first utility

First Utility is a fairly new energy company in that it was only formed shortly after the millennium. At the time they had endeavoured that their gas and electricity would be a lot cheaper than if you were buying it from one of the big six.

It would be prudent to remember at this time that no matter who you get your gas and electric from that it does exactly the same job as it does from other suppliers. It isn't like different blends of fuel from brands such as BP and Shell whereby there is a difference in the performance and cleaning ability of these brands.

You would think that since they are a smaller company then their prices would be cheaper since they have less overheads and therefore they can charge less. Whilst this is true, it also creates a sense of discord in the marketplace.

The big six may need to ramp up costs

Just now First Utility only has around 3% of the market share. However, in the event that this continued to rise year on year then the cheaper rate would mean that more people would move to them. The result of this is that for those that simply refuse to switch to another provider, then their own may need to charge even more in an attempt to prevent job losses.

Of course, this is hypothetical and depending on the long term stability of a smaller company muscling in, it would potentially over time force the big six to lower the prices.

The other potential reason for a price rise would be that the company expands too quickly and in turn they need to raise their prices because they have more people on the payroll. Again, this is purely hypothetical but it is an issue that could end up happening.

Everything coming full circle

However, with any smaller energy company there are also two potential situations whereby they will need to ramp up the costs.

The first would be in the case whereby they are not buying their fuel in bulk like the other providers do. The reason for this is that their client base would not benefit from such a mass buying spree of fuel. Due to this, when it does come time to buy it, the cost of this is higher and therefore this needs to be pushed down the line to the customer.

The other situation is where they start to get a better foothold in the market, or have lured people in at initially lower prices. However this can only carry on for so long and they too would need to up costs so that they are able to better maintain the overheads that they have created without them resorting to job losses.

Getting in contact with First Utility.

Whilst they have been seen to have problems (let's face it, all energy suppliers do), they are still regulated by Ofgen so they can't run amok when it comes to you as a customer.

Further, at the current point in time they are one of the cheaper energy companies on the market and should be considered as a supplier after any and all research is performed online. They do often tend to be competitive when it comes to people switching to them as well as trying to retain current customers.

If you're looking to contact them then you can do so by finding their various numbers for your needs online at this address


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