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Chart of the Week


Spook-tacular changes in the Domestic Energy Market

Katie Hickford Analyst

Hair-raising growth The publication of our third Domestic Market Share Survey of 2019 (referred to as Q319 and with a reporting date of 31 July 2019) has highlighted how the make-up of the domestic energy market players has changed and what a future landscape might look like. Two years ago, the challenger brands (originally set up to compete with the incumbent large suppliers) held 18% of the domestic energy market. Since then, the most recent survey results see the challenger brands collectively reach a 30% share of the energy market, their highest share to date. Of these, 46 small suppliers hold a 5% share of the market, and 12 medium suppliers hold around one-quarter, with large supplier share at 70% on 31 July 2019. Q319 has seen growth dominated by a few medium suppliers, with rapid growth by Bulb. In fact, Bulb’s growth set a new record for the supplier, and it had the second highest increase in quarterly energy accounts in the history of the Domestic Market Share Survey. The supplier stated it currently has more than 1.3mn customers in the UK, so if its growth continues, we predict it will exceed 3mn energy accounts by the beginning of 2020. Similarly, Octopus Energy reported strong growth in Q319 and on current trajectory could reach 3mn energy accounts by the start of 2022. Frightening future Figure 1 (which is based on average quarterly trends between Q317 and Q319 and applied on a constant basis) shows that in four years’ time, the domestic energy market share is set to become less ...

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