Table of Contents
Executive Summary
-
- The market
- Coal-fired power generation drops in 2014 due to plant closures
- Power generation from renewable sources accounts for almost a fifth of total electricity supply
-
- Figure 1: Analysis of electricity supplied in the UK, by type of fuel used in generation, 2014
- Government push for shale gas exploration in bid to reduce reliance on imports
-
- Figure 2: UK Gas Supply, 2010-14
- Energy suppliers cut prices in 2014 and early 2015, reflecting falling wholesale costs, cuts to green levies and increased competition
- Fixed tariffs increasingly popular
-
- Figure 3: Breakdown of average domestic dual fuel bill, 2013
- Market share of small suppliers reaches 11% in mid-2015
- Market factors
- Electricity Market Reform (EMR) to ensure investment in UK’s low-carbon electricity infrastructure
- Large Combustion Plant Directive drives increased closure rate of coal-fired power stations
- UK facing power capacity crunch
- Investor confidence in renewables sector falls due to government subsidies cuts
- The Industry
- What we think
Key Insights
-
- Why is the outlook for the renewables sector becoming more uncertain?
- How have smaller energy suppliers managed to gain market share from the ‘big six’ in recent years?
- Why does poor customer service and complaints handling remain an issues across the energy supply industry?
- What opportunities do smart meters offer for energy suppliers?
UK Economy
-
- Overview
-
- Figure 4: UK GDP quarterly development, 2003-15
-
- Figure 5: UK GDP in economic downturns and recoveries since 1979
- Inflation
- Interest Rates
- House prices
- Consumer spending
- Manufacturing
- Business Investment
-
- Figure 6: UK GFCF 2003-15
- Imports
- Exports
Market Factors
-
- Key points
- Industry Regulation
- Legislative Environment
- Large Combustion Plant Directive (LCPD)
- EU Renewables Directives
- UK renewables policy
- Renewables Obligation (RO)
- FeedIn Tariffs (FITs)
- The Renewable Heat Incentive
- There are two parts to the RHI:
- Electricity Market Reform
- Contracts for Difference (CfDs)
- Capacity Market (CM)
- Carbon Emission Reduction Target (CERT) and Community Energy Saving Programme (CESP)
- Energy Company Obligation (ECO)
Electricity Demand & Generation
-
- Key points
- Overview
- UK facing power capacity crunch
- Electricity supply
-
- Figure 7: Analysis of electricity supply in the UK, 2010-14
-
- Figure 8: Analysis of electricity supply in the UK, 2010-14
- Figure 9: Analysis of electricity supplied in the UK, by type of fuel used in generation, 2010-14
- Electricity consumption by end-use sector
-
- Figure 10: Analysis of electricity usage, by type of industry, UK, 2009-14
-
- Figure 11: Analysis of electricity usage, by the commercial sector, 200914
-
- Figure 12: Analysis of electricity usage by the commercial sector, 2014
- Coal generation
- Increased closure rate of coal-fired plants
- New coal-fired plants must be fitted with CCS technology
- Conversion of coal-fired stations to biomass plants
-
- Figure 13: Analysis of electricity supplied from coal-fired power stations in the UK, 2007-14
- Nuclear Power generation
-
- Figure 14: UK Nuclear Sites Planned Closure Dates, as of September 2015
-
- Figure 15: Analysis of electricity supplied from nuclear power stations in the UK, 2007-14
- Gas/CCGT generation
-
- Figure 16: Analysis of electricity supplied from gas-fired power stations in the UK, 2007-14
-
- Figure 17: Analysis of electricity supplied from gas-fired power stations in the UK, 2010-14
- Renewables generation
- Contracts for Difference to replace Renewable Obligation Certificates from March 2017
- Government subsidy cuts are raising uncertainties for renewables industry
- Green Investment Bank drive to boost investment in offshore wind
- Solar Power
- Proposed cuts to solar power subsides to prove hugely damaging to industry, according to trade association
- Hydro Electricity
- Bioenergy
-
- Figure 18: Bioenergy electricity generation capacity, by type of plant, 2010-14
- Figure 19: Renewable electricity generation in the UK, 2010-14
-
- Figure 20: Electricity generation from on- and offshore wind, 201014
- Figure 21: Renewable Energy Projects in Pipeline, by Technology, as of July 2015
Gas Demand & Supply
-
- Key points
- Overview
-
- Figure 22: Total gas supply, UK, 2010-14
- Potential for shale gas extraction
- Wholesale gas prices
-
- Figure 23: Average wholesales gas prices, 2002-14
-
- Figure 24: Average wholesale gas prices, 201014
- Gas demand by end-user
-
- Figure 25: Segmentation of industrial gas consumption, by end use industries, UK, 2010-14
-
- Figure 26: Segmentation of gas consumption, by non-industrial sectors, UK, 201014
-
- Figure 27: Segmentation of gas consumption, by non-industrial sectors, 2014
- Power Generation
-
- Figure 28: Gas supplied for electricity generation, UK, 2010-14
- Interruptible
- Industrial
-
- Figure 29: Gas supplied to the industrial sector, UK, 2010-14
- Commercial
-
- Figure 30: Gas supplied to the UK commercial sector, 2010-14
- Domestic
-
- Figure 31: Analysis of the development of gas supplied to the UK domestic sector, 2010-14
Retail Energy Market
-
- Key points
- Market Background
-
- Figure 32: Proportion of domestic electricity customers by supplier type, by region, 2000 and 2015
-
- Figure 33: Proportion of domestic gas customers of British Gas Trading and other suppliers, by region, 2015
-
- Figure 34: Number of supplier switches in the domestic gas and electricity markets and share of small suppliers, Great Britain, Q1 2010 - Q2 2015
-
- Figure 35: Number of supplier switches in the domestic gas and electricity markets, Great Britain, January 2010 June 2015
- Regional Demand
-
- Figure 36: Gas sales and customers by region, Great Britain, 2013
-
- Figure 37: Electricity sales and customers by region, Great Britain, 2013
- Market Issues and Recent Developments
- Reforms promoting increased competition and supplier switching in retail energy market
- ‘big six’ suppliers come under fire for charging high prices in 2013
- Energy suppliers announce price cuts in 2014 and early 2015, reflecting falling wholesale costs, cuts to green levies and increased competition
- Breakdown of average gas and electricity bill
-
- Figure 38: Breakdown of average domestic electricity& gas household bill, 2014
- Figure 39: Breakdown of average domestic dual fuel bill, 2014
- Smaller suppliers gaining market share
-
- Figure 40: Domestic gas supply market shares in Great Britain, by company 20102015
- Figure 41: Domestic electricity supply market shares in Great Britain, by company 20102015
- Lower prices, customer dissatisfaction with the ‘big six’, and differentiation strategies are driving the growth of small suppliers
- Poor customer service and complaints handling remains an industry-wide issue
- CMA Energy Market Investigation
- Smart Meter Roll-out programme
- Switching rates in the SME sector also set to increase
The Consumer - Current Supplier and Recent Switches
-
- Key points
- British Gas continues to be the top supplier of gas and electricity
-
- Figure 42: Current gas and electricity supplier(s), June 2015
- Three-quarters of people have not changed energy supplier in past 12 months
-
- Figure 43: Change of gas/electricity supplier in the last 12 months, July 2015
The Consumer - Reasons for Switching & Future Intentions
-
- Key points
-
- Figure 44: Reasons for changing gas/electricity supplier in the last 12 months, June 2015
- More than half of respondents (54%) not planning to switch supplier in the next 12 months
-
- Figure 45: Plans to change gas/electricity supplier in the next 12 months, July 2015
-
- Figure 46: Possible reasons for wanting to change gas/electricity supplier, July 2015
-
- Figure 47: People planning/considering switching supplier if they saw a cheaper tariff on a price comparison site, by current supplier, July 2015
-
- Figure 48: People planning/considering switching supplier if they are not happy with the customer service provided by their current supplier, by current supplier, July 2015
-
- Figure 49: People planning/considering switching supplier because their current supplier is too expensive, by current supplier, July 2015
Company Profiles
-
- Key points
- Company Profiles
Centrica/British Gas Trading
-
- British Gas
- Direct Energy
- Centrica Energy
- Centrica Storage
- Company Strategy and Outlook
-
- Figure 50: Financial analysis of Centrica, 2010-14
-
- Figure 51: Centrica revenue segmental analysis, 2014
-
- Figure 52: Financial analysis of British Gas Trading, 2010-14
EDF Energy
-
-
- Figure 53: Financial analysis of EDF Energy, 2010-14
-
- Figure 54: EDF Energy revenue segmental analysis, 2014
-
RWE NPower
-
- Company Strategy and Outlook
-
- Figure 55: Financial analysis of Npower, 2010-14
-
- Figure 56: RWE - UK revenue segmental analysis, 2014
E.ON Energy
-
- Company Strategy
-
- Figure 57: Financial analysis of E.ON Energy Solutions, 2010-14
-
- Figure 58: E.ON revenue segmental analysis, 2014
ScottishPower Energy Retail
-
- Company Strategy & Outlook
-
- Figure 59: Financial analysis of ScottishPower Energy Retail, 2010-14
-
- Figure 60: ScottishPower revenue segmental analysis, 2014
SSE
-
- Company Strategy and Outlook
-
- Figure 611: Financial analysis of SSE, 2011-15
-
- Figure 62: SSE revenue segmental analysis, 2015
Ecotricity Group
-
- Company Strategy
-
- Figure 63: Financial analysis of Ecotricity Group, 2010-14
First Utility
-
- Company Strategy and Outlook
-
- Figure 64: Financial analysis of First Utility, 2010-14
Good Energy Group
-
- Company Strategy
-
- Figure 65: Financial analysis of Good Energy Group, 2010-14
-
- Figure 66: Turnover analysis of Good Energy Group, by segment, 2012-14
Future Energy Demand
-
- Key points
- Electricity Generation Forecast
- National Grid’s Future Energy Scenarios
-
- Figure 67: Annual power demand in Great Britain, 2016-36
-
- Figure 68: Annual power demand in Great Britain, 2016-36
-
- Figure 69: Major current and planned transmission network development projects, as of November 2014
- Future Potential Energy Mix
-
- Figure 70: Forecast power generation installed capacity under “slow progression” scenario, by source, 2015-36
-
- Figure 71: Forecast power generation installed capacity under “gone green” scenario, by source, 2015-36
-
- Figure 72: Forecast power generation installed capacity under “no progression” scenario, by source, 2015-36
-
- Figure 73: Forecast power generation installed capacity under “consumer power” scenario, by source, 2015-36
-
- Figure 74: Future potential energy mix in 2035, by scenario
- Interconnectivity between European countries to increase
-
- Figure 75: Existing and planned interconnectors, as of November 2014
- Gas Demand Forecast
-
- Figure 76: Forecast UK gas demand, 2015-35
Further Sources & Contacts
-
- Trade Associations & Regulatory Bodies
- Trade Magazines
- Trade Exhibitions
Back to top