Why Are Customers Ditching the Big Six Energy Companies?

A new green energy scheme, known as the Clean Energy Switch, was launched earlier this month and already attracted tens of thousands of British households to ditch the Big Six energy companies in the first 48 hours.

More than 42,000 homes signed up for the scheme, which will use the collective bargaining power of all of those involved to drive cheaper, more affordable renewable energy. With a number of green energy providers affiliated with the deal, the one which can offer the lowest rates will win all of the custom at the end of the incentive.

Clean Energy Switch Signals Biggest Nail in Fossil Fuels’ Coffin Yet

The scheme is being coordinated by consumer collective The Big Deal in tandem with campaign group 38 Degrees and will use the large number of signatures it garners to bargain for better value for its customers.

Traditionally, renewable energy has been far more expensive than fossil fuel options, but plummeting costs of solar panels, along with an increase in green energy efficiency across the board, has seen the gap between the technologies narrow significantly. Thousands more households are expected to sign up before subscription closes.

As well as providing a means to cheaper, cleaner energy, the incentive will also force the Big Six energy companies (British Gas, npower, EDF, ScottishPower, Eon and SSE) to rethink their approach to renewables and consider reinvesting in the technology.

A Backlash to the Big Six

The scheme comes in the wake of news that all six of Britain’s foremost energy providers had dropped their green alternatives. In their defence, the companies claim that the regulations imposed by Ofgem were too stringent and did not offer enough flexibility in the options they were able to offer.

Ofgem had imposed a four-tariff regime, meaning that providers were not allowed to offer a surplus of complex and confusing tariffs to their customers. In response, all six companies promptly dropped their green options. They also maintain there is relatively little demand for the greener tariffs due to heightened costs, and claim that the energy they provide now is far cleaner than a decade ago.

Ofgem was adamant that there was scope within the new scheme to incorporate a renewable tariff, as well.

Strength in Numbers

The plan is supported by Labour, the Scottish Nationalist Party (SNP) and the Liberal Democrats – but tellingly, not by the incumbent Conservative government. The Tories have made no secret of their backing for the controversial practice of hydraulic fracturing (or fracking) and have also announced plans to cut subsidies for green energy in the coming weeks and months.

However, the immense support for the programme shown by the tens of thousands of families who have already signed up demonstrates the public demand for cleaner energy. “It’s fantastic that people are signing up in their thousands. People want clean energy and believe in people power. Together we can fight climate change and save money,” explained The Big Deal's Will Hodgson. “The more people who joint the Clean Energy Switch the better deal we can get. There is power in numbers.”