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www.cornwall-insight.com Anna Moss and Alex Wynn HELPING YOU MAKE - - PowerPoint PPT Presentation
www.cornwall-insight.com Anna Moss and Alex Wynn HELPING YOU MAKE - - PowerPoint PPT Presentation
www.cornwall-insight.com Anna Moss and Alex Wynn HELPING YOU MAKE SENSE OF THE HELPING YOU MAKE SENSE OF THE www.cornwall-insight.com ENERGY AND WATER SECTORS ENERGY AND WATER SECTORS The knock-on effect of the British Gas price
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- The knock-on effect of the British Gas price increase:
- Switching levels at their highest levels in almost four years
- British Gas posts the largest energy account loss in the history
- f the survey
- SaMS make their largest energy account gain in the lifetime of
the
- Regional pricing strategies and white label suppliers – how
can suppliers target specific regions?
- Why does the 250,000 energy account threshold matter?
- How has the PPM price cap affected account growth?
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- 90
- 185
- 180
- 760
- 800
- 700
- 600
- 500
- 400
- 300
- 200
- 100
Q117 Q217 Q317 Q417
Energy account loss (k)
- Largest energy account loss in
the lifetime of the survey
- British Gas’ electricity account
holding falls below 6mn
- 650,000 losses attributed to
collective switch, white label fixed price tariffs and prepayment tariffs
- 150,000 “reflect market switching
trends” and impact of price rise in September
- Despite a marked improvement
in competitiveness of fixed price tariffs, within ~£100 of cheapest
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- 75
- 75
- 45
- 50
- 65
- 40
- 75
- 70
- 60
- 30
- 40
- 70
- 50
- 15
£0 £50 £100 £150 £200 £250 £300
- 80
- 70
- 60
- 50
- 40
- 30
- 20
- 10
Price differential with cheapest fix on the market (£/year) Energy Accounts (k) Account change British Gas price differential Sainsbury's Energy price differential
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- 10
15 25
- 10 -15
15 5 40 30 £0 £50 £100 £150 £200 £250
- 20
- 10
10 20 30 40 50 Eastern East Midlands London MANW Midlands Northern North Western Southern South Eastern South Wales South Western Yorkshire South Scotland North Scotland Price differential with cheapest fix
- n the market (£/year)
Energy Accounts (k) Account change Price differential
- 5 -5
10 20 10
- 15
20 5
- 5
5 £0 £20 £40 £60 £80 £100 £120 £140 £160
- 20
- 15
- 10
- 5
5 10 15 20 25 Eastern East Midlands London MANW Midlands Northern North Western Southern South Eastern South Wales South Western Yorkshire South Scotland North Scotland Price differential with cheapest fix
- n the market (£/year)
Energy Accounts (k) Account change Price differential
E.ON UK EDF Energy
- Clear regional strategies from all large suppliers apart from SSE
- Pattern of gains and losses reflects these changes
- Most came within £50 of cheapest
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- 100,000
200,000 300,000 400,000 500,000 600,000 700,000 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Electricity transfers Large suppliers to SaMS SaMS to large suppliers Large supplier to large suppliers SaMS to SaMS
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385 470 365 465 565 805 320 235 335 755 535 855 100 200 300 400 500 600 700 800 900 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Energy accounts (k)
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- Medium suppliers
separately segmented this quarter
- Ovo Energy records its
largest energy account gain in lifetime of survey
- Bulb records fast growth
- n the back of a
competitive fixed tariff through the summer and
- nwards
- Spark wins on price in the
prepayment market
- 350
- 40
25
- 40
- 5
30 265
- 5
100 30 5
- 25
15 20 30 80
- 50
- 400
- 300
- 200
- 100
100 200 300 British Gas SSE E.ON UK Scottish Power EDF Energy npower Small suppliers First Utility Ovo Energy Utilita Utility Warehouse Co-op Energy Green Star Energy Economy Energy Spark Bulb Extra Energy Dual fuel accounts (k)
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10 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 50 100 150 200 250 300 E Flow Energy iSupply Energy Iresa Octopus Energy Ecotricity Avro Energy Robin Hood Energy PFP Energy Green Network Energy Good Energy Bristol Energy ENGIE Solarplicity SO Energy Gnergy One Select Tonik Energy Toto Energy Affect Energy Green Energy Future Energy Together Energy Fischer Energy Our Power Go Effortless Energy Powershop Pozitive Energy Better Energy Zog Energy Daligas Energy share (%) Accounts (k) Electricity accounts Gas accounts Energy share
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0% 5% 10% 15% 20% 25% 10 20 30 40 50 60 70 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Small and Medium Supplier energy share at 31 October Number of suppliers
Small and medium suppliers Large suppliers SaMS energy share at 31 October*
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50 100 150 200 250 300 350 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Energy accounts (k) Utilita Spark Economy Energy E
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13 23% 19% 22% 21% 21% 31% 26% 26% 13% 11% 12% 11% 12% 9% 10% 9% 11% 9% 10% 10% 15% 16% 15% 18% 6% 6% 6% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Electricity Gas Energy Dual fuel Market share (%) SSE/npower British Gas E.ON UK EDF Energy Scottish Power Medium suppliers Small suppliers
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- Increasing partnerships
- Ovo Energy, E.ON UK and Good Energy move into electric vehicle
market
- Price cap debate and political pressure result in announcements
- ver default fixed tariffs
- BEIS publishes a draft bill for the proposed price cap on standard
variable tariffs
- Select committee starts pre-legislative scrutiny of the bill
- Some calling for CMA engagement measures to be fully trialled
- Ofgem’s consultation on supplier hub could be biggest overhaul in
institutional arrangements for supply
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New Cornwall Insight training course Commercials of Energy Retailing 27 February 2018 | London | £595 (+VAT)
This course will help you understand:
- Where opportunities exist in the retail market
- How suppliers scope, enter, operate, and compete
- How energy retailing might change in-line with technology, policy and
regulatory developments
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