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Competition in the energy market is at a record high as consumers have a choice of a total of 35 suppliers, more than double the number in the market four years ago, according to analysts at Cornwall Energy.
The consultancy warned that interventions into the market must be “carefully targeted”, ahead of provisional remedies set to be announced by the Competition and Markets Authority (CMA).
In a report, Cornwall Energy pointed out that four of the big six now hold their lowest share of the household market in 10 years.
Nine new entrants have joined the market in the last 12 months, and independent suppliers collectively hold a 15.5 per cent share of the dual market – nearly four percentage points higher than last year.
The CMA is due to announce the provisional remedies arising from its investigation on Thursday. Analysts say this will provide the industry with a “tough message” to increase competition and engagement in the energy market.
Cornwall Energy managing director Jo Butlin said: “Despite ongoing media and political scrutiny, our report finds that competition in the household energy market has never been healthier.
“Any interventions into this market will need to be carefully targeted, and must avoid throwing the baby out with the bathwater.”
The report follows news that RWE Npower blamed, among other things, a “high level of competition” for its 7 per cent reduction in domestic customer accounts and a £99 million loss in 2015.
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