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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- Entry in the domestic electricity and gas markets continued, with the number of active suppliers increasing from 71 in Q1 2018 to 73 in Q2 2018.
- In Q2 2018, small and medium suppliers reached a combined market share of 24% and 25% respectively in electricity and gas, while the market share of the six large suppliers was down to 76% in electricity and 75% in gas. See Market Structure.
- As of 28 September 2018, the average price of SVTs from the six large suppliers for a typical dual fuel customer paying by direct debit increased to £1,206, from £1,194 in the previous month. This was due to EDF’s price increase taking effect on 31 August. The market cheapest tariff also increased from £842 to £921. As a result, the differential between these tariffs decreased from £352 to £285.
- British Gas and ScottishPower each increased their SVT prices in October, which will be captured in next month’s update.
- Average individual SVT prices in Q3 2018 varied between £902 and £1,230 across the six large and six of the medium suppliers. The average price of the cheapest tariff for each supplier ranged between £902 and £1,113. Switching away from each supplier’s SVT to their own cheapest tariff could yield savings of on average between £35 and £250.
- In Q3 2018 British Gas, npower, Scottish Power and Co-operative Energy offered default fixed tariffs. These were priced up to £30 less than the respective suppliers’ SVT prices on average. See Prices and Profits.
- Switching continues on an upward trend. The number of domestic switches in the 12 months up to August 2018 was 9% higher than in the 12 months up to August 2017 for electricity and 19% higher for gas. See Switching and Consumer Experience.
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