New figures from Ofgem shine a light on the UK’s energy market

by Tim Deakin Domestic Energy News

New figures from Ofgem shine a light on the UK’s energy market

From bills and prices to suppliers and profits, here’s everything you need to know about the current state of the energy market The official government regulator for gas and electricity markets in the UK, Ofgem, has released its latest figures for Britain’s energy market. These new findings help to show where households are getting their energy supply from, what kind of tariff customers are on and what really makes up the cost of an energy bill. So, let’s dive right in and take a closer look at Ofgem’s results.

The current landscape for the energy market

As of April 2019 there were 62 active suppliers in the domestic energy market, 7 of which only supplied gas and 2 that focused purely on electricity. This left 53 suppliers of both forms of energy.

What about market share between smaller suppliers and the larger suppliers? Well, it appears that the Big 6 are still dominating here with 73% of gas contracts and 74% of electricity contracts residing with a large supplier. This means that small suppliers still only have just over a quarter of the market share for gas and electricity. The latest numbers also show how the average domestic dual fuel bill has changed (or not) over time. In 2010, the average bill was £1,116 including VAT. This has stayed largely consistent over the course of this decade, as in 2017 the average bill was still £1,117 including VAT.

The real changes can be found in the report’s research into average tariffs versus the cheapest tariffs available.

As of April 2019, the standard variable tariff in the UK is around £1,254 per year. However, the cheapest available tariff is significantly less expensive than this, at £880 per year.

So what about shopping for a new supplier?

Ofgem reports that between January and March 2019, 1.13 million gas customers and 1.4 million electricity customers switched their energy supplier. Of these, 320,000 moved to small or medium suppliers for their gas and 406,000 moved to small or medium electricity suppliers.

What does this mean for you?

These figures tell us a lot of useful information, but the main takeaway here is that when it comes to finding the right tariff, shopping around is the best course of action. If you’ve been with the same supplier for a year or more, switching may save you hundreds of pounds a year – particularly if you’ve been transferred onto a more costly standard variable tariff.

Wondering what your next steps should be? Click here to use our easy and quick comparison tool, or get in touch with our team today on 0800 031 48 00 and you could be saving yourself hundreds of pounds a year in as little as 5 minutes.

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