23rd Sep 2015 11:31
LONDON (Alliance News) - A new report published by an independent energy market consultancy on Wednesday showed the 'Big Six' energy firms in the UK have lost around 660,000 customers in the past year as smaller, independent suppliers become more popular and increase their market share.
Cornwall Energy is a market intelligence and consultancy firm focused on the UK energy market, providing services to network operators, gas producers, electricity developers and generators large and small, energy suppliers, commercial and legal practices, regulators and consumers.
Its latest figures show independent suppliers in the UK now hold a collective market share of 13.4% and acquired more new energy accounts in the three months ended July 31 than they held in total four years ago.
Cornwall Energy Director Robert Buckley said it had been another significant summer of growth for the independents, who were "breaking the stranglehold" of the Big Six.
The Big Six comprise of British Gas, which is owned by Centrica PLC, SSE PLC, ScottishPower, E.On, EDF Energy and nPower. There are more than 20 independent suppliers in the UK.
Cornwall Energy said First Utility is the fastest growing supplier in the country, holding 4% of the dual-fuel market with 765,000 customer accounts at the end of July.
The UK government will be pleased with the new figures as it has worked throughout late 2014 and into 2015 to try to encourage UK households to switch energy suppliers more often to ensure they get the best deals.
Back in February, the Department for Energy and Climate Change launched a Power To Switch campaign, which attracted 350,000 visits to its website in the first month alone, resulting in 130,000 households switching supplier, representing an 80% rise from the same period a year earlier.
The UK energy market is currently being investigated by the Competition and Markets Authority after UK energy regulator Ofgem, in June 2014, referred the electricity and gas supply market to the CMA over concerns about features of the market which were preventing, restricting or distorting competition.
The findings of the CMA's report were due to be published before the end of 2015, but last week the investigation was pushed back by between four to six months so that the CMA could consider the many detailed responses received from suppliers, consumer groups, government and regulators to the provisional findings and range of potential remedies published in July, it said.
The CMA now intends to publish its provisional decision on remedies in January 2016 with a view to reaching its final decision by the end of April 2016.
Meanwhile, Ofgem itself has cracked down on the Big Six, dishing out fines to E.On for overcharging and to SSE for receiving excess payments, and it even banned ScottishPower from selling after failing to hit complaint targets.
SSE shares were up 1.9% to 1,443.0 pence per share on Wednesday afternoon whilst Centrica shares were up 1.5% to 224.90 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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