Ecotricity announces plans to undercut ‘big six’ electricity prices

Clean energy supplier Ecotricity has said it will start providing electricity at a lower cost than the ‘big six’ from October.

The company confirmed that it will no longer price match the standard tariffs of the major energy firms – British Gas, E.ON, EDF, SSE, Npower and Scottish Power – but that it will do it independently, meaning that customers will have a slightly cheaper bill.

Dale Vince, founder of Ecotricitym said, “Around 40% of our electricity supply is self-generated by our own fleet of wind and sun parks, and we have planning permission to more than double that supply in the near future – this degree of energy independence now means we can be price independent.”

He added that although the bill’s reduction will be modest, it would be “a really significant step” for the green energy company, saying, “People often falsely assume that green electricity is always more expensive. But most people in Britain are actually still on a standard tariff – so we’re a little cheaper than what the majority pay for brown electricity and we aim to get even cheaper than that big brown price in the near future.”

Five of the big six energy companies – all but British Gas – dealt a blow to domestic carbon reduction efforts in the UK in July, by pulling the plug on their renewable energy tariffs.

Ecotricity was scored highly for its green energy credentials by Ethical Consumer magazine recently, with Good Energy – which gets 100% of its electricity from renewable sources – topping the ranking.

Ecotricity simplified its tariffs in July, by deciding to only offer customers 100% green energy. The company is currently powering about 75,000 homes in the UK.

Vince said, “We are stretching the gap between ourselves and the conventional energy companies – we have one simple 100% green electricity tariff, we continue to invest more per customer in new sources of renewable energy, and we are now moving further away from the price of the big six standard tariffs, too.” 

Further reading:

European renewables industry calls for legally binding 2030 targets

Energy giants pull the plug on green electricity – but viable options remain

Majority of public want ‘fair, affordable and sustainable energy’, says study

Good Energy named best provider of renewable energy by Ethical Consumer

The Guide to Limitless Clean Energy 2013