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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Retail highlights June 2020
The number of active licensed suppliers in the domestic retail market fell to 57 in Q1 2020 from 58 in Q4 2019, due to one new entry and two exits.
In January 2020, OVO completed the purchase of SSE, while keeping SSE as a separate white label brand. Engie exited the market in February 2020, as its domestic business was acquired by Octopus. One new supplier (Omni) entered the market.
Between January 2020 and March 2020 one supplier (GNergy) ceased to trade and we had to appoint a SoLR. During the same period a number of exits via trade sales also happened for which the migration of customers is still ongoing. These include: npower (acquired by E.ON) and iSupply (EDF). These exits will be reflected in subsequent updates.
In Q1 2020, the combined market share of the six largest suppliers, including OVO after the acquisition of SSE, was up 3% points to 73% in electricity and 72% in gas compared to Q4 2019. Correspondingly, the market share of small and medium suppliers dropped to 27% in electricity and 28% in gas during the same period.
See Market Structure
Prices and Profits
As of 28 June 2020, the average price of SVTs from the six largest suppliers for a typical dual fuel customer paying by direct debit was £1,125, unchanged from the previous month, and close to the current default tariff cap (£1,127).
The cheapest tariff basket from the ten cheapest suppliers in May 2020 was priced at £804, up £13 compared to the previous month. As a result, the differential between the average price of SVTs for the six largest suppliers and the cheapest tariff basket decreased from £334 to £321.
In Q2 2020, the average standard variable tariff (‘SVT’) price for a domestic customer with one of the twelve larger suppliers to customers on direct debit payment methods ranged between £915 and £1,126. This period coincided with the fourth default tariff cap period. The average SVT prices of seven of the twelve suppliers were within £5 of the cap level, set at £1,127 in this period.
Excluding prepayment customers, the proportion of domestic customer accounts on default tariffs among eleven of the twelve large and medium suppliers was 51% in electricity and 48% in gas as of April 2020, a decrease of 2% points for both fuels compared to October 2019. Including prepayment customers, this proportion was 57% for electricity and 54% for gas.
See Prices and Profits.
In May 2020, the number of switches grew by 5% compared to April 2020. In electricity it rose fractionally from 428,260 to 428,717, and in gas rose from 352,067 to 391,701. On the other hand, it fell by 4% compared to the same month in 2019, dropping by 9% for electricity, but rising by 3% for gas. This suggests that customer switching activity may be getting back to pre-Covid-19 levels after the slowdown observed in March and April 2020.
For the 12 months up to May 2020, there were 5.7 million switches in electricity, and 4.7 million in gas. For both electricity and gas, this is 1% lower than observed in the 12 months up to May 2019.
In May 2020, the proportion of net gains in switching away from the six largest suppliers made up 21% of total switches for gas and electricity combined, down from 29% in May 2019.
Prices and profits
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.
Methodology and sources
We have selected this range of indicators to support general understanding of the market, including how they contribute to the key priorities outlined in our strategic narrative. 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