Electricity and Gas Supply Market Indicators - 21/08/2013

Reports, plans and updates

Publication date

Industry sector

Supply and Retail Market

We designed the Supply Market Indicators (SMI) to provide a snapshot of the energy supply market, and how it changes over time. Our aim is to increase the transparency of the market, and help consumers to understand it. The SMI is an indicator; it shows the trend in average wholesale, retail and other costs across the market. It does not seek to provide estimates of companies' profits, either collectively or individually.

Detailed information on individual companies' revenues, costs and profits in both their generation and supply arms is available on a backward-looking basis in their Consolidated Segmental Statements. Ofgem requires the large vertically integrated companies to produce these annually based on audited figures.

The SMI shows an up-to-date estimate of:

  • the annual bill for an average dual fuel customer on a standard tariff, and
  • the annual costs per customer a representative supplier incurs for delivering the electricity and gas

The SMI also provides an indicative annual net margin, which is the difference between the customers' retail bill and the suppliers' costs. This is presented as a ‘snapshot’ margin for the year ahead and as a rolling average that smoothes fluctuations in the ‘snapshot’ margin. The latter approach better illustrates trends over time. The current values are:

  • Snapshot net margin: £90
  • Rolling average net margin: £90

The SMI estimates are based on publically available information and verifiable data, where possible. We make proportionate and periodic adjustments to the data when the available evidence warrants it. We will consider including in the SMI any robust evidence stakeholders send us (SMI@ofgem.gov.uk). For more detail, please see the SMI methodology.

See the document attached below for graphs and tables relating to the costs and net margins for electricity, gas and dual fuel customer bills.