Instead of accepting the ever increasing prices of the UK’s big six energy giants, why not look for competitive deals offered by some of the smaller providers?

Bigger is not always better when you’re looking for the best electricity prices. A comprehensive review of all the tariffs reveals that smaller companies have the lowest prices and lots of hidden benefits.

It seems that energy companies are constantly topping local headlines. Their price hikes attract a lot of media attention and complaints from disgruntled consumers. They sparked further outrage when the public got wind of the profits made.

The good news is that you have options, so don’t have to take energy price increases lying down. You’ll be surprised by some of the excellent deals offered by the smaller energy providers in the market.

What The Energy Sector Looks Like Today

The big six still dominates the local market. British Gas, Scottish Power, E.ON Npower, EDF Energy Scottish and Southern Energy all have a fair share of the market. By all reports, they account for almost 99 percent of the UK market.

However, there is very little competition between these providers since the others follow as soon as one takes action. To find lower prices, you’ll have to look beyond this networked monopoly to find hidden gems in the remaining 1 percent.

With an average annual cost of £1,054, First Utility is setting a new standard by topping the list of cheapest providers in the market. That annual rate costs £350 less than the UK’s average prices, so it presents substantial savings for consumers.

Ovo Energy and Co-operative Energy are two other suppliers with competitive tariffs. For instance, Ovo Energy has one of the most competitive fixed rate tariffs with an annual cost of 1,140, which results in savings of £250. Co-op went contrary to the norm and announced a decrease in prices, which resulted in savings of up to £205 for their customers.

You’ll see that these deals are comparable to and sometimes better than, the offerings put forward by the energy giants. When you’re thinking about switching providers to save money, smaller energy companies are worth a second look.

Research is Key

Although Ovo, Co-op, and First Utility are emerging as popular alternative energy companies, there are many more to consider.

Always look behind the scenes to determine the owner because some of the big six companies are branding smaller companies to compete at that level. Such is the case with Marks and Spencer Energy and Ebico; both of which are owned by SSE and Sainsbury's Energy.

Another advantage of smaller companies is that many of them place their focus on providing renewable energy sources. For instance, Good Energy uses wind and water to produce its own energy. Since the energy is resold, the prices have remained stable since 2009.

Ecotricity, another green energy provider, funnels its profits back into the development of new sources of green energy.

Utility Warehouse operates like a savings club for their customers. They guarantee the lowest prices and members get additional discounts when they refer their friends. As exciting as this seems, customer reviews are mixed for this provider. According to reviews, the guidelines are complicated and clouded in mystery. This is one example of why it’s important to do your homework when you’re making the switch to an unknown provider.

What’s stopping you?

Consumers are generally put off by the thought of moving to a smaller provider. The size of the company should never be a deterrent when you’re offered the potential to save. Besides, a lot of these companies are quickly building a reputation for excellent service on top of their competitive prices.

Some consumers say that the size is not as off-putting as accessibility to the service. For instance, First Utility is an online only company.

The attractive deals sometimes force small companies to deal with a sudden influx of customers, which may lead to delays and other customer service issues.

These minor problems shouldn’t stop you from switching to save money. And since small companies are ahead with the best electricity prices, it’s definitely a move you should consider.