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July 2016

The ‘Big Six’ could lose a quarter of their customers by 2020

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The ‘Big Six’ could lose a quarter of their customers by 2020

Analysts have forecast that the ‘Big Six’ energy suppliers will lose a quarter of their customers by 2020 as millions of households will switch to smaller suppliers. Citigroup stated that the market share in the supply side of the ‘Big Six’ has fallen from 98% to about 92% in the last year, partly driven by anger about last autumn’s price rises.

The ‘Big Six’ is made up of British Gas, SSE, EDF Energy, E.On, Scottish Power and Npower and between them they control about 92% of UK households. Citigroup have predicted that this will fall to below 70% by the end of the decade as the market becomes more competitive.

According to the report “UK Energy Policy -Unwinding the Big 6”, written by a research arm of Citigroup investment bank, some large companies could be driven out of the market as the report argues “If the supply market does develop as the current trends suggest and the available profit pool declines by circa 40% we may well see some participants simply running their supply business to maximise cash flow in the short term and exit the market at some point”. Figures indicate that UK consumers have 3.8m accounts with smaller suppliers and 45.9m are with the ‘Big Six’.

CMA unveils plans to make the energy market more competitive

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CMA unveils plans to make the energy market more competitive

The Competition and Market Authority (CMA) have today released a report outlining remedies to address the problems holding back competition in the energy industry. The CMA will introduce these solutions following the conclusion of its investigation in June. Despite the increase in independent energy suppliers, providing competitively priced energy tariffs, 88% of UK households remain with the “Big Six” Energy suppliers; British Gas, EDF, E.ON, Npower, Scottish Power and SSE. Around 70% of those customers are STILL on the more expensive ‘default’ Standard Variable Tariff and the CMA’s latest analysis reveals that the potential savings for these customers has risen significantly over the past 2 years – with the average customer making a saving of over £300 by switching to a cheaper deal!