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Autoswitching sites continue to grow as customers look for better deals without the hassle. But is regulation and consolidation on the cards for the future? Rachel Willcox reports.
5 years ago
The latest figures from Energy UK represent a 20 per cent increase on 2019, a record year for electricity switching. The majority of switches in February were from larger players to smaller and mid-tier suppliers.
Eon's adoption of the Kraken platform will see millions of customers migrated onto the system. One industry insider believes this could be a signal to other large players to enter the market.
People working at home due to coronavirus are expected to increase their bills by £16 a month, according to research by Uswitch. In analysis produced before Boris Johnson ordered a lockdown of the country, the switching service estimated that with 16.8 million people working from home there will be an additional 25 per cent more electricity and 17 per cent more gas use per day.
Npower has reported a sharp decline in earnings during 2019 after customers continued to leave the supplier in droves. Meanwhile, Eon has announced plans to create a new energy company called Eonnext that will combine the residential and SME customers of both companies.
The focus on renewable energy is of paramount importance to the UK government; however, this has led to significant regulatory complexity and risk for energy players operating in the UK, explains Malcolm Gray.
Challenger energy supplier Gnergy has become the first supplier of 2020 to exit the market. Around 9,000 customers will now enter the supplier of last resort process.
Guidance outlining how energy suppliers should deal with customers during the coronavirus pandemic is to be published by the government imminently, Utility Week understands. The paper is expected to contain information from Citizens Advice as to what will be expected while the virus continues to affect both business and consumers.
Centrica has revealed that group chief financial officer Chris O’Shea is to take on the role of interim chief executive with immediate effect. The parent company of British Gas also announced a replacement for Charles Berry, who is to step down as chairman on medical advice.
As the government issues stark advice on limiting movement and multiple industries warn they will struggle to survive, utilities have been reminded of their responsibilities to the most vulnerable in society. Ofgem has urged suppliers to be flexible over debt recovery and late payments, while Citizens Advice has said the sector needs to be prepared for a sharp increase in those struggling to pay their bills.
Macquarie’s Specialised and Asset Finance business has signed a deal with So Energy to install second-generation (SMETS2) smart meter devices. It is the first such deal Macquarie has signed with a challenger energy supplier and the first time it is offering installation and management of meters, through its partnership with Morrison Data Services.
The Bayford Group, an investment company which owns Gulf Gas and Power, has acquired challenger brand E (Gas and Electricity), which has more than 300,000 customers and employs around 150 people.
As some workers are kept home by the coronavirus pandemic, EDF is considering offering those affected a reprieve from payments, while the energy industry grapples with the effects on electricity demand. Meanwhile, planning applications for renewable energy projects hit a new high – all in the latest round-up of the weekend’s papers.
Vattenfall ultimately did not gain the scale required to make its venture into the UK energy retail market worthwhile, industry experts have told Utility Week. The state-owned Swedish renewables giant sold more than 190,000 customers to EDF this week.
Scottish challenger energy brand Together Energy has suspended its door to door sales teams with immediate effect and is encouraging other retailers to do the same. The supplier says it hopes the suspension will be short-term.
