Yorkshire energy supplier to take on the big six

Engie hopes to appeal to customers by moving them onto its cheapest possible tarriff once their fixed deal comes to an end, unlike rivals which switch people on to controversial "standard variable tariffs" (SVTs) which have been heavily criticised as they are so expensive.

The Tories have promised to cap these tariffs if they get back into power.

Engie said UK customers could save £3bn by switching to its service - around £175 per customer. Around 66 per cent of UK energy customers are on SVTs as they forget or can't be bothered to switch supplier once their deal comes to an end.

Engie promises to get rid of the dreaded move to SVTs if customers don't have time to shop around as they will be automatically moved to the cheapest possible rate.

Engie's cheapest deal at the moment is a fixed product at £880. Price comparison website uSwitch said the average big six standard variable tariff, which most people are on, is £1,138 per year.

​Engie, which powered the 2012 London Olympics, is a French utility firm that has set up its UK energy supply d​ivision in Leeds. Until now it has focused on supplying energy to SMEs.

​The firm said it is​ the largest company to enter the UK domestic energy market for over 15 years​.

Wilfrid Petrie, CEO of E​ngie​ in the UK​, said: "We believe we have something new to bring to the market. We are not a well known household name, but we are a large organisation. We have 153,000 employees worldwide and 20 million domestic customers.

​"We don't want to be one of the big seven. We don't have any of the legacy issues the others have."

Energy firms have been widely criticised for ripping off customers ​​​with their poor value SVTs ​and Prime Minister Theresa May has ​​promised to bring in an energy price cap​ as a key part of the Tory manifesto.

E​ngie said it​ is the first UK supplier to commit to rolling customers onto the cheapest available tariff.​ The firm said it ​​will contact all customers before their fixed term plan ends to ​tell them their options.

If the customer does not respond​, they will automatically be moved onto a price​ ​equivalent to the cheapest available E​ngie product, with no exit fees if they then decide to​ ​change their plan.

​Engie's business​ model is not based on making big profits from energy supply. Instead it hopes to make money via extra services such as smart thermostats and controlling your heating remotely. The firm said this can be very helpful if customers are worried about elderly or vulnerable friends and relatives.

E​ngie said the environment is central to ​its ethos and all of ​its plans offer 100​ per cent​ renewable electricity at no extra cost.

​Its 100​ per cent​ Green tariff is one of few plans available in​ ​the UK to guarantee 100​ per cent​ green gas and electricity. For all customers that sign up to the Green​ ​tariff, Engie​ will make a donation to a community initiative scheme that invests in local​ ​sustainability projects.

Paul Rawson, ​d​ivisional CEO of Energy Solutions at E​ngie UK, ​said:​ ​“We are bringing a new kind of energy to the UK market, putting the customer at the heart of our

business – to help save money, save energy and bring additional benefits to the wider community.

​"​We believe in fair, clear and transparent pricing. Our Rate Rollover Promise takes the onus away from​ ​the customer to switch tariff to get a better deal and our E​ngie​ Control bundle makes connected and​ ​smart technologies more accessible. We want to deliver sustainable solutions for the UK which is why​ ​all of our electricity is renewably sourced as standard.”

Claire Osborne, energy expert at uSwitch.com, said: "Engie is the largest energy supplier to enter the UK market for over 15 years so consumers may feel more confident switching to them knowing they already have an established global brand.

"Engie's new deal at £879 a year is the second cheapest energy tariff available at the moment - and with 100 per cent renewable electricity as standard it will certainly prove an attractive offer for many consumers, not just the environmentally-conscious.

"Engie is launching a wide range of innovative products with different customers in mind, such as green tariffs which include 100 per cent renewable gas, always rolling on to the cheapest product, and a tariff that will track the wholesale cost of energy on a monthly basis - hopefully this will lead to more people engaging with the market. Not all energy suppliers are made the same and Engie is out to prove this."

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Engie employs over 2,000 people across Yorkshire.

Both its home and business energy operations are headquartered in Leeds, where it employs 300 people. It also has major operational bases in Leeds, Doncaster and Wakefield.

Earlier this month Engie acquired the regeneration services business of Doncaster-based Keepmoat for £330m.

Engie supplies energy and services to Leeds City Council and provides services for Wakefield Metropolitan District Council and Mid-Yorkshire Hospitals NHS Trust (Pinderfields and Pontefract).

It also has a generation contract for an energy station which is jointly owned by University of Leeds and also Leeds Teaching Hospitals NHS Trust.