The domestic energy supply market has gone through a period of intense competition over the last five years. Lower barriers to entry saw a rise in licensed competitors to a peak of 62 in 2018, diversifying propositions, service and added value options for consumers. Today, that number has fallen to under 50 fully licensed suppliers as the market has moved into a phase of consolidation. Challenging market conditions have seen exits through acquisition or using Ofgem’s safety net, the Supplier of Last Resort (SoLR) mechanism, which has ultimately led to a supplier licensing review.
This insight paper with UK law firm Shoosmiths – Consolidation in the domestic energy market – shows that if suppliers fail to shift their business models for the new world it is likely to continue.
