Who would want to run an energy company?!?

Must be a hell of a job! The CEO's are all there explaining to OFGEM (their regulator) that they can't possibly reduce the cost of power to UK consumers - when along come a couple of little known companies who promptly undercut them! Puts them in a rather difficult position, and no doubt hurriedly rereading exactly what they did say so it see what manoeuvring room they had left themselves!

Now I do understand that part of their problem is that they have bought a lot of their supplies forward (i.e. committed to a firm price for their raw supplies some time in advance, ensuring that they could predict the cost for both themselves and customers into the future, allowing them to offer capped or fixed tariffs), but it also leaves us consumers thinking - Why stay with my current company when they are more expensive, and they themselves are saying they can't reduce prices further?

Well it is true that the customer service records of first:utility and Ovo, the newest entrants have let to be properly tested (first:utililty have not really been a mass market player until now, and Ovo are brand new), but none of the major power companies are truly outstanding in that respect (the highest overall satisfaction score any of the big players got was 52% in a recent Which? survey). Its also true that both these companies, unless they are buying energy forward at today’s prices might need to increase rates in the coming months, and that in first:utility’s case you really need to stay with them about 13 months to unlock a 15% discount, but other than that if the big energy companies are being truthful about their inability to reduce prices there is little reason to stick with an overpriced deal now.

Perhaps not how the companies intended their message to read but that’s the problem when they have to balance a regulator, a set of demanding shareholders and the poor old customer (who is stuck at the end of the line!)

The average saving moneymaximisers customers are making is steadily increasing as well - about £140 last month to £157 today so it might be a good idea to run your usage through our calculator and see whether you are currently getting the best deal you could.