Independant Energy Companies

A question about : Independant Energy Companies

There appears to be numerous small companies supplying gas and electricity, some recommended by MSE
One such company listed by the Energy Club doesnt even display their contact address on the web site until you look deep into the T&C`s
I would suggest that you Google their post code to find out the actual location of these suppliers
I found one to be a semi-detached house and the other in a Community Centre.
We now seem to have the two extremes, from the large office blocks of the major 5 to possibly someone working from home with a PC ?
I feel very uneasy about dealing with such companies, albeit top marks for them for getting into the energy market.

Best answers:

• All companies have to have an Ofgem supply licence.
• Why does this make you uneasy? In this modern world, an energy supplier is simply a trader - all you need to break into the industry is the starting capital. Ebico estimated that if they wanted to "break free" from SSE they would need about Ј750k, so once you have that away you go.
  After that you can outsource everything - IT, customer service, billing etc. allowing the business owner time to concentrate on hedging energy and making bucketloads of cash.
  All suppliers do this to some degree - despite their famed customer service the one time I had to pick up the phone to speak to OVO I spoke to "Britney" who certainly didn't sound Bristolian!
• Both have valid good points, but for someone to supply me with energy possibly sitting in a semi- det spare room doesn`t fill me with confidence.
  It quite an eye opener when you search a utility companies post code with Google Street View .
  Your comments are much appreciated
• Bit like a money saving site that was run from a bedroom .
• They don't "supply" you with energy, they buy units from "somewhere" and match them to units used by you (which you then pay them for: at a profit to them).
  If they go bust, I've no idea what would happen to your bill, presumably their licence gives some form of safeguarding.
  As they don't have to pay for a shining edifice, legions of drones, or crates of bubbly at the Shareholder's meeting, they should be able to undercut the Big Boys, but I'm surprised that they can buy the units cheaper than the the Big Boys do.
  So can I just negotiate with a power station "somewhere" to pay them direct for my electricity and miss out all the middle men?
• Facade:-
  Yes, how they can buy energy lower than the main stream suppliers is baffling
  Bluebirdman quoted:- Ebico estimated that if they wanted to "break free" from SSE they would need about Ј750k
  
  I dont dispute that but I cant imagine a person in a semi or a Community Centre having that amount of money to set up a business. One small company has set a target of 80k customers, that doesnt seem a lot to me when you consider the small profit they make out of each customer and then have to make a profit.
  Look at GBenergy Supply, there is no trading address displayed prominently on their web site despite this ruling:- Companies have to provide a means of contact on their websites in addition to their postal and email addresses, the European Court of Justice
  (ECJ) has ruled. -
  However it can be found buried in the TC
• I use ZOG to supply my gas and they are an absolute pleasure to deal with and simplicity personified . If only all companies where the same !
• No problem dealing with small companies, but just remember if they go bust you are an unsecured creditor if you have a credit balance with them.