In our monitoring of the retail energy market for gas and electricity, we collect and analyse a vast range of data. Our retail market indicators give a snapshot of this monitoring. They draw from a comprehensive framework which underpins our ongoing monitoring, including our annual update on the retail energy markets in Great Britain. You can view these updates in the related publications section below.
Our interactive retail market indicators
Select from the below to view the indicators in detail and for an overview of our monitoring themes.
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- There were 69 active suppliers in the domestic gas and electricity retail markets as of December 2017, representing a net entry of 17 new suppliers compared to December 2016.
- Over the same period, medium and small suppliers increased their combined market share by five percentage points, reaching 22% and 21% respectively in gas and electricity. Correspondingly, the six large suppliers were down to 78% and 79%.
- In March 2018 the average price of SVTs offered by the six large suppliers for a typical dual fuel customer paying with direct debit was stable at £1,135 relative to the previous six months. Its differential relative to the market cheapest tariff increased to £325, as the market cheapest tariff fell by £10 to £810 relative to the previous month.
- Several suppliers have recently announced SVT price increases. These price increases are taking effect in April, May and June 2018.
- The number of domestic switches in February 2018 reached nearly 449,000 in electricity and 348,000 in gas, the highest values ever recorded in this month. The proportion of net gains for medium and small suppliers out of the total number of switches was nearly 30%, relatively stable compared to February 2017.
The retail markets need effective competition between suppliers if they are to work in consumers’ interests. By monitoring the number of active suppliers we can see how many rivals suppliers compete with, while market shares help us understand the degree of competitive pressure that the different suppliers can exert on each other. Looked at over time, market shares reveal the competitive dynamics for existing suppliers. They also show the extent of new entrants’ success in building their businesses.
Competition in the energy market is necessary to incentivise suppliers to improve their cost efficiency. It should also push suppliers to improve their prices and services in the fear that if they do not, they will lose customers to their rivals and will struggle to attract new business.
Our indicators show trends across available tariff types and contracts, and the prices suppliers offer to different customer groups. Energy company profits help us to understand the strength of competition among companies. We assess this through the companies’ pre-tax margins, out of which they make a profit. We also look at the costs that make up a typical dual fuel customer bill over time to better understand what factors drive price changes.
Consumers promote effective competition by being actively engaged in managing their energy, and making a credible threat of switching where better offers are available. This pressures suppliers to innovate and offer better products and services for them.
We look at trends in external switching (between suppliers) and internal switching (with the same supplier) to understand levels of consumer engagement. We also look at average switching times, an indicator of process quality, and consider trends in overall consumer satisfaction with suppliers. These indicators are a snapshot of our more detailed consumer research on market engagement.
We have selected this range of indicators to support general understanding of the market, including how they contribute to the consumer outcomes outlined in our corporate strategy. We also aim to provide a picture of the market where it is not produced elsewhere, or where there is scope for us to set a clear methodology for the data.
Our data comes from sources that are either publicly available, provided by third parties or from responses to Ofgem information requests. Specific sources and relevant dates are listed with each indicator. We are grateful to third parties for allowing us to reproduce their data.
Most of these indicators will be updated quarterly while still allowing access to historic information. Updates will depend on the availability of data for an indicator.
We will review the indicators periodically to ensure they continue to help promote transparency and understanding of the retail energy market and as additional sources of information become available.
These market indicators and data are not intended for use or to be relied on for any commercial purposes. View copyright and disclaimer