- Publication date
- 25th March 2021
- Information types
- Policy areas
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Bills, prices and profits infographic - plain-text version
Facts and figures on Britain's energy market, larger supplier prices and profits, energy bills and switching.
What makes up Britain's energy market?
The full rollout of competition in the energy market began in the late 90s. As of September 2020, 55 active suppliers compete in the domestic energy market. Of these, 48 provide both gas and electricity, 5 solely supply gas and 2 solely electricity.
Domestic market shares - Gas
- 70% - large legacy suppliers*
- 30% - other suppliers
Domestic market shares - Electricity
- 70% - large legacy suppliers
- 30% - other suppliers
In 2009, we told energy companies they must publish annual statements (CSS) showing separately their revenues, costs and profits for how they generate and supply energy so profits are clearer for consumers.
*Large legacy are: BG, OVO, E.ON, EDF, npower, Scottish Power.
Prices and profits of the larger energy suppliers
The latest numbers show:
|Year||Wholesale costs||Direct costs||Network costs||Environmental/Social costs||Other direct costs||Operating costs||EBIT||VAT||Bill|
What makes up your energy bill?
Breakdown of a dual fuel bill:
|Environmental and social obligation costs||13.05%|
|Supplier pre-tax margin||1.33%|
|Other direct costs||1.53%|
Breakdown of gas bill:
|Environmental and social obligation costs||1.86%|
|Supplier pre-tax margin||0.49%|
|Other direct costs||1.58%|
Breakdown of an electricity fuel bill:
|Environmental and social obligation costs||22.92%|
|Supplier pre-tax margin||2.07%|
|Other direct costs||1.48%|
Average available tariffs
At February 2021:
- Standard variable tarriff around £1,042 per year1
- Cheapest tarriff basket around £933 per year2
1. Based on average of dual fuel, direct debit and available paper tariffs from the large legacy suppliers at January 2021. A price cap applied to these tariffs from January 2019.
2. Based on the simple average of the 10 cheapest tariffs offered by suppliers in the market (one tariff per supplier). Where each tariff is based on the dual fuel average available paperless tariff paid by direct debit with typical domestic consumption values at January 2021.
How do UK prices compare with Europe?
UK ranks below average on gas prices and around average on electricity prices.
Average domestic gas price (medium user)
Average UK domestic gas price (incl. taxes) for medium user customer for period January to June 2020 is below the median EU price.*
Average domestic electricity price (medium user)
Average UK domestic electricity price (incl. taxes) for medium user customer for period January to June 2020 is above the median EU price.*
When it comes to energy shopping...
For January 2021:
- 263 thousand gas customers switched
- 350 thousand electricity customers switched
- 85 thousand moved from large legacy to other suppliers for gas (net gain)
- 97 thousand moved from large legacy to other suppliers for electricity (net gain)
During this time 30% of total switches across both fuels moved to other suppliers (net gain).
Further data sources: Market structure and share figures from Distribution Network Operator and Xoserve data. Prices and profits of the large legacy suppliers from Ofgem Consolidated Segmental Statements. Average available tariffs calculated from EnergyHelpline data. Figures based on dual fuel tariffs paid by direct debit (Typical domestic consumption values as of 1st April 2020: 12,000kWh for gas and 2,900kWh for electricity). Average variable tariffs based on dual fuel direct debit standard variable tariffs available from the large legacy suppliers. UK/Europe price comparison figures from the Department for Business, Energy and Industrial Strategy. Switching figures to other suppliers are calculated taking the gross gains for other suppliers then subtracting the losses to calculate a net gains value. Ofgem switching figures calculated from Network Operator data accounting for total number of meters for fuel type.
Information correct at March 2021.
Behind the numbers
You can find fuller historical data and information on how Britain's energy market is structured, larger supplier prices and profits, energy bills and customer switching via the following links:
- State of the Market Assessment
- Understanding the profits of the larger energy suppliers
- Understanding energy prices in Great Britain
- Understanding energy bills
- Quarterly energy prices from the Department for Business, Energy and Industrial Strategy
- Ofgem Data Portal
Who are the larger energy suppliers?open key term pop-up | Dual Fuel (DF)open key term pop-up | Wholesale costsopen key term pop-up | Network costsopen key term pop-up | Supplier operating costsopen key term pop-up | Environmental and social costsopen key term pop-up | Pre-tax marginopen key term pop-up | Switchingopen key term pop-up
Who are the larger energy suppliers?
The "Big Six" is the name sometimes collectively given to the six larger energy companies who supply most of Britain's gas and electricity. Each of them generate electricity, and deliver both gas and electricity to our homes and businesses. They are:
- Centrica plc (three retail brands: British Gas, Scottish Gas and Nwy Prydain in England, Scotland and Wales respectively)
- E.ON UK
- Scottish and Southern Energy (SSE)
- RWE npower
- ... more
Dual Fuel (DF)
A type of energy contract where a customer takes gas and electricity from the same supplier (or two affiliated suppliers).
This is the amount energy companies pay to buy gas and electricity which they then sell to you. They may buy from the wholesale market, have a contract with an electricity generator, or be part of a company generating its own energy. Wholesale gas is often bought in advance. If suppliers don't buy enough, they may have to buy more which can be at a higher price depending on the market.
These include the costs to build, maintain and operate the gas pipes and electricity wires run by the network companies who transport energy to your property.
Suppliers are charged by network companies for this, and pass on this cost to their customers. We limit network costs carefully though price controls. This is because you can't normally choose which network company you use. You can find out more at more
Supplier operating costs
These are the costs associated with running a retail energy business, including sales, metering and billing.
Environmental and social costs
These are the costs of government programmes to save energy, reduce emissions and encourage take up of renewable energy. They also include the cost of social programmes like the Warm Homes Discount.
Find out more about these at Environmental programmes
This is the difference between the money an energy company receives from their customers and the costs they have to deliver that energy. The ‘margin’ is not just the profit energy companies make. This is because they must pay tax and fund debt payments plus other obligated costs from this money.
The process of changing gas or electricity supplier, or changing to a new tariff with the same supplier.