Retail market indicators

In Q2 2024 the number of active licensed suppliers remained same at 21. This was due to no new entries and exits. 

The combined market share of the large legacy suppliers was 69% in electricity and in gas. Other large, medium and small suppliers accounted for the remaining 31% in both fuels, the same as previous quarter. 

For our classification of suppliers by size see the ‘information tab’ of the market share indicators either for electricity or gas. 

In October, wholesale market prices increased during the first half of the month driven by the increasing demand for gas powered generation due to cooler weather and wind generation below forecast, and fears surrounding gas supply due to the escalation in the conflict in the Middle East The prices barely moved during the second half of the month.  For more detailed updates on wholesale prices visit Wholesale market indicators | Ofgem. 

In October, the number of new fixed tariffs on offer decreased compared to September. Around 91% of these offers were available to the whole market, rather than exclusive to specific customers, with prices generally lower than the price cap for 1 October 2024 to 31 December 2024. The average fixed tariff was priced at £1,631 in October, £27 lower than in the previous month. 

In October 2024, the average price of SVTs with large legacy suppliers for a typical dual fuel customer paying with direct debit increased from £1,568 in September 2024 to £1,717 in October 2024, which is aligned with the price cap for the period 1 October to 31 December 2024. The market cheapest tariff increased from £1,504 in September 2024 to £1,565 in October 2024 and the cheapest tariff basket increase from £1,530 in September 2024 to £1,614 in October 2024. See the methodology for information on how the cheapest tariff basket is calculated.

The update of all profit and average bill indicators based on Consolidated Segmental Statements (CSS) has been paused. Only three large domestic legacy suppliers (British Gas, EDF and Scottish Power) and one non-domestic supplier (SSE) had submitted a CSS under existing regulation. This information is insufficient to generate market representative statistics. A review of the CSS obligation is now completed and will expand CSS reporting to most of the domestic and non-domestic market. This will apply to supplier financial accounts for 2023 onwards with publication 10 months after the company’s financial year end. We intend to resume the publication of these indicators as soon as new data becomes available. Read Reviewing the Consolidated Segmental Statements – our decision for more information.

The Market Stabilisation Charge was a temporary measure in place from 14 April 2022 to 31 March 2024 which required all domestic suppliers acquiring a domestic customer to pay a charge to the losing supplier when wholesale prices fell considerably below the relevant wholesale price cap index. For more information about the MSC read - Market Stabilisation Charge dashboard | Ofgem. 

In September 2024, the total number of switches saw an increase of 11% compared to August 2024 and up by approx. 50% compared to the level observed in September 2023. However, the total number of switches remains below levels seen before the gas crisis started and is 29% below if it is compared to September 2021. The number switches increased in both fuels, electricity switches from 259,575 in August 2024 to 287,779 in September 2024, and gas switches from 203,295 in August 2024 to 227,026 in September 2024. 

The proportion of net gains switching away from the large legacy supplier was around 33% in August 2024, continuing to reflect mainly customers moving towards other large and medium suppliers.

Suppliers’ Customer Credit Balances (CCBs) are an important aspect of the retail energy market, and this is reflected in licence obligations in relation to both consumer standards and supplier financial resilience.

The data below reflects Ofgem's chosen policy measure. This is for Fixed Direct Debit domestic customers.  This focuses the analysis on how households are impacted by CCBs. We have ‘netted off unbilled consumption’ meaning that energy you have paid for but not used does not feature. Finally, as Customer credit balances are seasonal (they rise in summer months and are then spent in colder winter months) we have included the yearly average to disaggregate the seasonal variation from its underlying trend.

These figures reflect households that are in credit, the values are true as of the last day of each calendar quarter (31^st March, 30^th June, 30^th September 31^st December).

Finally, the use of quartiles may be impacted as usage changes in the future, which would need to be reviewed and recognised.

This data is published by the end of March, June, September and December each year.  For further information see customer credit balances explanatory note.

We have selected this range of indicators to support general understanding of the market, including how they contribute to the key priorities outlined in our strategic narrative. We also aim to provide a picture of the market where it is not produced elsewhere, or where there is scope for us to set a clear methodology for the data.

Our data comes from sources that are either publicly available, provided by third parties or from responses to Ofgem information requests. Specific sources and relevant dates are listed with each indicator. We are grateful to third parties for allowing us to reproduce their data. 

Most of these indicators will be updated quarterly while still allowing access to historic information. Updates will depend on the availability of data for an indicator. 

We will review the indicators periodically to ensure they continue to help promote transparency and understanding of the retail energy market and as additional sources of information become available.