In anticipation of the release of a study carried out by energy watchdog Ofgem, Energy UK, which represents the energy industry, has issued its own report, stating that the energy market is competitive.
Energy UK’s study was carried out by Cornwall Energy and found that there are currently 18 gas and electricity suppliers in operation across the country. This marks the highest number of suppliers on the market since 2005.
The news follows a call from Energy Secretary Ed Davey for Ofgem to consider breaking-up the big six if need be, to achieve a fairer market.
‘Quarter of a million shop around for a new energy deal every month’
A spokesperson for Energy UK said: “Competition in the energy market is increasing and the pace of change is on the up.
“Around a quarter of a million shop around for a new energy deal every month and they now have many more suppliers to choose from.”
The report did, however, add that the big six – British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE – still supply just under 95% of all gas and electricity in the UK.
Director of Consumer Futures Adam Scorer said: “Small suppliers are taking market share away from the six dominant suppliers, and that’s a good thing.
“But let’s not pretend that the problems of the energy market will disappear because big six dominance has reduced from total to just enormous.”
Pre-emptive response by energy companies
Energy UK’s report was released just days before Ofgem will reveal the preliminary results of its own investigation into the UK energy market.
The energy regulator’s report is expected to call on the Competition and Markets Authority to carry out a more in-depth investigation into the gas and electricity market.