State of the energy market report: retail
Reports, plans and updates
- Publication date
- Industry sector
- Supply and Retail Market
- Generation and Wholesale Market
Our state of the market report gives insights into the energy retail market.
Details
The state of the market report presents findings from our most recent data on energy retail markets. We analyse metrics and trends and provide insights into the four outcomes set out in our Consumer Interest Framework, which are:
- fair prices
- suppliers and resilience
- quality and standards
- low-cost transition
We aim to publish this report every six months.
Main points
Fair prices
The current price cap for average households on dual fuel Direct Debit increased to £1,849 in April 2025 due to higher wholesale costs. Business electricity and gas prices have begun to fall but remain higher than pre-2021 levels. More tariffs are now available in the market, giving consumers increased choice. Consumer switching activity is rising but still below pre-crisis levels. Consumer debt and arrears reached a record high of £3.85 billion in quarter 4 2024.
Suppliers and resilience
There are 23 domestic energy suppliers and 72 business energy suppliers currently active in the market. Six large companies dominate the domestic market with 91% market share and Octopus is now the largest electricity supplier and second largest gas supplier in Great Britain (England, Scotland and Wales). Some newer suppliers are growing quickly, but they still have very small overall market shares.
Quality and standards
Domestic complaints are at their lowest since 2022. 81% of customers are now satisfied with their energy supplier which is the highest level ever recorded in the survey. Prepayment meter customers' satisfaction has improved, matching the satisfaction levels of Direct Debit customers for the first time. Business satisfaction remains steady at 62%, with larger businesses reporting higher satisfaction rates than smaller ones.
Low-cost transition
Smart time of use (ToU) tariff adoption has increased by over 75% in the last year, because of rising electric vehicle ownership and people looking for more innovative and cost-effective energy options. Smart meters have been installed in 65% of homes and 61% of businesses, with 90% of these meters operating in smart mode. Ofgem is undertaking compliance action with energy suppliers to reduce the number of smart meters not operating in smart mode.