Because of their lower overheads, small energy suppliers can typically offer cheaper deals and a better customer service to their customers.
But the current energy crisis has hit smaller energy suppliers badly, with a number going bust in recent months. If you’re on a cheaper deal with a small energy supplier and they do go bust, you’ll be protected by the Ofgem safety net. The worst that can happen is you may be moved onto a bigger supplier’s default tariff, which could be more expensive.
But if your small supplier doesn’t fail, you can continue on the same lower tariff and hopefully ride out the turbulent changes to the market. In the current climate, you might not gain from switching to a bigger supplier.
Ofgem provides some useful information and advice if you’re concerned about your small supplier going bust.