Competition in energy increasing
Competition in the UK energy market is increasing new research has shown. An independent report for Energy UK reveals that competition is not only increasing, but gathering speed with more and more companies supplying gas and electricity to homes and businesses. Medium and smaller suppliers now account for a higher market share of the household electricity, gas and dual markets and levels are now the highest they have ever been since competition started in the late 1990s.
Other key findings include at 31 January:
- Suppliers in the household market: a total of 24 companies are either supplying householders with gas or electricity or both. That is 18 dual fuel energy suppliers, three electricity only suppliers and three gas only suppliers to households;
- Dual fuel: 12 companies are competing with the 6 major suppliers to supply households with dual fuel energy up from 6 three years ago;
- Market share: the aggregate shares of the household electricity, gas and dual fuel supply markets held by the major suppliers all dropped below 95% in the quarter to 31 January 2014, the lowest levels seen in the 15 years of the competitive markets; and
- Market concentration: is declining on a Great Britain-wide and region-specific basis, falling particularly sharply in the most recent quarter. This suggests increasing competition. There also appears to be a relationship between the availability of gas indicating that access to gas is an important factor affecting concentration in the market;
Energy UK said:
“Competition in the energy market is increasing and the pace of change is on the up. Around quarter of a million shop around for a new energy deal every month and they now have many more suppliers to choose from. Since the 1990s the number of suppliers has increased four-fold with smaller and medium sized companies now making up more of the market.
“It pays to shop around for an energy supplier and deal that suits your own circumstances best. Switching is easy and the industry is working to making it faster. You can get all the information you need from company websites or from trusted switching sites which have the Ofgem Confidence Code stamp of approval. If you are unsure about what to do Energy UK has a guide to simple switching which you can get free at www.energymadeclear.com.”
Notes for Editors
- View a full copy of the Cornwall Energy report
- The report was prepared for Energy UK by Cornwall Energy and independent energy consultancy.