Record number of UK households now with small and medium energy suppliers

More than 30 per cent of consumers who switched last year did so from one of the six largest energy suppliers

The market share of the six largest energy suppliers in December was 79 per cent for electricity, and 78 per cent for gas (Getty)

More than one in five households across the UK now get their energy from small- and medium-sized suppliers, leaving the largest six suppliers with a record-low market share, data from regulator Ofgem has revealed.

Ofgem said on Wednesday that during 2017, 5.1 million electricity consumers and 4.1 million gas consumers switched supplier, which was the highest number for almost a decade.

More than 30 per cent of those consumers switched from one of the six largest suppliers – British Gas, EDF, nPower, E.On, Scottish Power and SSE – to rival smaller companies. Ofgem said that many of the customers switched for the first time.

“With more customers voting with their feet, the message is clear: suppliers need to look at what they are offering to their customers, or risk losing them,” said Dermot Nolan, chief executive of Ofgem.

“Nevertheless, there are still too many consumers who are paying too much for their energy, which is why we are introducing price protection whilst we reform the market, to make competition work for all consumers,” he said.

The Ofgem figures show that, as of December last year, smaller and medium-sized suppliers were delivering electricity to 21 per cent of consumers, and gas to 22 per cent. Back in 2013 their market share was just 4.7 per cent for electricity and 5 per cent for gas.

The six largest energy suppliers’ market share, meanwhile, was 79 per cent for electricity and 78 per cent for gas in December, down from 84 per cent for both at the end of 2016.

Still, Ofgem said that around 57 per cent of non-prepayment meter consumers remain on poor value standard variable rates, which can be as much as £300 more expensive than the cheapest deals on the market.

Ofgem has repeatedly said that it is working to make switching easier, quicker and more reliable in a bid to help people save money, and particularly protect the most vulnerable customers.

Kevin Pratt, consumer affairs expert at price comparison website MoneySuperMarket, welcomed Wednesday’s Ofgem figures calling them “encouraging and further proof of the ever changing face of the retail energy market”.

He said that the data proves that “there has never been a better time to be a domestic energy customer in the UK, with over 65 suppliers and all types of different tariffs to choose from”.

“But for all the people engaging, there’s still millions languishing on expensive standard variable tariffs,” he pointed out. “The noise about the incoming price cap can blind people but it shouldn’t – quite simply the quickest and easiest way to save money on your energy bills, especially right now when it’s still freezing, is to go online and switch, either with a Big Six or emerging supplier,” Mr Pratt said.