Energy: Competition

Energy and Climate Change written question – answered on 8th May 2014.

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Photo of Caroline Flint Caroline Flint Shadow Secretary of State for Energy and Climate Change

To ask the Secretary of State for Energy and Climate Change, pursuant to his oral contribution of 2 April 2014, Official Report, column 909, on energy price freeze, what the evidential basis is for the statement that independents' share of the retail market has increased from one per cent in 2010 to five per cent.

Photo of Michael Fallon Michael Fallon The Minister of State, Department for Business, Innovation and Skills , Minister of State, Department of Energy and Climate Change, Minister of State for Portsmouth

Data from Ofgem show that independent suppliers’ share of the domestic retail energy market in December 2010 was just under 1%.1 Further data published in Ofgem’s State of the Market Assessment show that their share of the market had grown to just over 5% by January 2014.2 This figure is supported by data from a report compiled by Cornwall Energy for Energy UK on competition in the British household energy supply markets, which state that in January 2014 the independents’ share of the domestic retail energy market was just over 5% for both electricity and gas.3

1The independents’ share of the retail electricity market was 0.6%; for gas it was 0.5%. See Ofgem (2011) ‘2011 Great Britain and Northern Ireland National Reports to the European Commission’ (pdf), available at:

http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/NATIONAL_REPORTS/National%20Reporting%202011/NR_En/C11_NR_UK-EN.pdf

2 This figure is based on Meter Point Administration Data from Distribution Network Operators. See Ofgem (2014) ‘State of the Market Assessment’, pp.7-9 (pdf), available at:

https://www.ofgem.gov.uk/ofgem-publications/86804/assessmentdocumentpublished.pdf

3 See: http://www.energy-uk.org.uk/press-releases/competition-in-energy-increasing.html

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