Albany, NY -- (SBWIRE) -- 10/29/2014 -- Although the UK electricity and gas supply market continues to be dominated by the ‘big six’ energy firms, smaller suppliers have gained market share - reaching an estimated 8% in mid-2014. Smaller competitors have been successful in attracting customers from the larger players by offering better value prices tariffs or by stressing their green credentials or community involvement. They have also been able to take advantage of consumers’ continued mistrust of the ‘big six’.

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With recently introduced changes by Ofgem, which aim to reduce barriers to effective competition and make it simpler for consumers to switch supplier, competition in the energy supply sector is set to further intensify. Poor customer service remains an issue across the industry and this needs to be a key focus of improvement for all suppliers to give them a competitive edge. However, with household budgets remaining squeezed, competition is expected to remain largely price based for the foreseeable future.

Table of Content

Executive Summary

The market
Electricity supplied from coal-fired stations down in 2013
Total renewable electricity generation has more than doubled between 2009 and 2013
Figure 1: Analysis of electricity supplied in the UK, by type of fuel used in generation, 2013
UK dependent on imported natural gas
Figure 2: UK Gas Supply, 2009-13
Average dual fuel bills more than doubled over the last 10 years
Figure 3: Breakdown of average domestic dual fuel bill, 2013
More people switching to smaller energy suppliers
Market factors
Electricity Market Reform (EMR) to ensure investment in UK’s low-carbon electricity infrastructure
Government sending mixed signals to wind generation sector
Subsidies for large solar farms to be scrapped from April 2015
Old coal-fired power stations to be faced out
First new UK nuclear power station in a generation receives official go-ahead by European Commission
Government supports new generation of gas-fired power stations
Competition and Markets Authority (CMA) investigating big six suppliers
Roll-out of smart meters at centre of key changes to energy supply market over the next few years
The industry
What we think

Introduction

Definitions
Methodology
Abbreviations
Market positioning

UK Economy

Overview
Inflation
Interest rates
Consumer spending
Manufacturing
Business investment

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