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’.