Retail market indicators

In Q4 2022 the number of active licensed suppliers dropped by one to 22. This was due to one exit and no entries.  

The combined market share of the large legacy suppliers fell by one percentage point in electricity to 71% and remained unchanged at 71% in gas. Other large, medium and small suppliers accounted for the remaining 29% in both fuels. 

For our classification of suppliers by size see the ‘information tab’ of the market share indicators.

In April 2023 wholesale market prices have continued to fall, but they remain around twice as high as prices observed before the gas crisis started in the second half of 2021.   

Following the Spring Budget announcement, the Energy Price Guarantee (EPG) will remain below the price cap values set for the period from April to June. Suppliers are expected to keep their tariff prices in compliance with the EPG. While variable tariffs have generally remained on offer with prices adjusted towards the EPG levels, suppliers have withdrawn fixed tariffs from sale to new customers and adjusted prices only for existing (but not for sale) fixed tariffs. As a result, there is still no available update on the average price of fixed tariffs in the market this month. 

The average price of SVTs with large legacy suppliers for a typical dual fuel customer paying with direct debit decreased by one pound to £2,499, coinciding with the EPG. The cheapest tariff in the market increased to £2,450 in April 2023. The cheapest tariff basket also increased to £2,489. As a result, the differential between the average price of SVTs for the large legacy suppliers and the cheapest tariff basket decreased to £9. 

From 14 April 2022, we have required suppliers to pay a Market Stabilisation Charge when acquiring new customers. The market stabilisation charge will only apply in certain market conditions (that would otherwise create risks to market stability), which we will assess on a weekly basis. You can find out if the Market Stabilisation Charge has been triggered, and if so what the level of the charge is on our website at Market Stabilisation Charge dashboard | Ofgem. 

In March 2023, the total number of switches was up 20% relative to February 2023, and 59% above the level observed in March 2022, but remains significantly lower than before the gas price crisis started. The number of electricity switches increased from 121,335 to 147,218, while gas switches increased from 74,902 to 88,151.  

The proportion of net gains switching away from the large legacy supplier was around 30%, compared to 15% in February 2022, mainly reflecting customers’ movements towards other large and medium suppliers. 

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.