The Co-operative Group has just launched its own gas and electricity service in a bid to open up the market.
Offering a single tariff for consumers, the company hopes that its latest product will improve transparency in the sector.
Consumers will not be required to enter into long-term contracts and no penalties will be applied should people want to switch providers.
Nigel Mason, chief executive of Co-operative Energy, told the Daily Telegraph that the energy market is currently dominated by the Big Six firms.
"Really not much has changed in the way of attracting new entrants apart from the proliferation of products and tariffs which have an opposite effect of confusing consumers," he added.
"We need to galvanise people into taking more interest in switching."
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