Challenger energy companies eye customers from the big six

Marion Dakers
SMALLER energy companies have launched price cut pledges and bids in customer auctions to try and take clients from the big six.

Ovo Energy, which has 150,000 customers, today unveiled a five per cent cashback offer for customers paying by direct debit, in a bid to entice households that have been hit by winter price hikes.

And Green Star Energy, which launched this summer, has been named as one of the winners of this week’s energy-switching auction, alongside British Gas and Scottish Power.

Green Star’s bid for around 13,000 customers in one of the four auction categories could give a huge boost to its current customer base of around 2,600. However, as few as one in ten households who sign up to energy auctions in Britain, a relatively new phenomenon, end up taking the offer and switching provider.

On Wednesday, Telecom Plus bought 770,000 customer accounts from Npower as it tries to crack the domestic energy market.

Meanwhile, Downing Street was playing down reports yesterday that David Cameron is keen to “get rid of the green crap” in energy policy as part of the Autumn Statement.