The collective profits of the UK’s six largest energy suppliers have fallen for the first time in four years due to rising competition in the market, according to a market-wide report from the energy regulator. Ofgem’s analysis of the energy market has found that overall profits for the Big Six dropped by 10pc to £900m last year as they lose their grip on the market to a new generation of energy start-ups. The companies face further pain this winter as the Government’s controversial cap on standard energy prices descends on around 11 million accounts, despite signs that competition in the market is improving. Over 73 energy companies are competing to supply gas and power to Britain’s homes, of which a quarter have opted for a new entrant to the market. Gillian Guy, the head of Citizens Advice, said the ri sing number of people opting for new energy suppliers “underlines why it’s so important that Ofgem tightens up its licensing rules”. “We know that some suppliers entering the market aren’t prepared to provide adequate customer service, or aren’t financially robust enough to survive. Poor customer service often hits vulnerable customers the hardest. It needs to stop poorly prepared companies from entering the market, and take badly performing suppliers out of the market quicker,” she said.
Telegraph 11th Oct 2018 read more »