This report examines the UK Energy Industry, predominantly covering the residential energy supply market. Featuring expert energy market analysis, consumer insights, competitive landscape, and more, this report provides the vital details you need to innovate and secure growth in an increasingly challenging market.
Key Issues Covered in this Report
- The UK’s current and potential future energy mix.
- The government’s energy policy and its impact on the energy industry.
- Consumer attitudes towards energy suppliers and energy efficiency measures.
- The impact of the energy crisis on retail market competition.
- How energy suppliers are diversifying their product and service offering.
UK Energy Industry – Current Overview
Soaring wholesale energy costs have effectively halted competition in the retail energy market, as suppliers pulled fixed deals from the market and set their default tariffs close to the price cap or the government’s Energy Price Guarantee. In 2023, a number of energy suppliers have started to relaunch fixed deals. However, most of these tariffs offer little savings compared to the variable standard tariffs, which most people are on. With limited incentives for customers to switch suppliers, the return of competition to the market is expected to be slow.
What’s Next for the UK Energy Industry?
While wholesale costs have fallen, prices are still higher than pre-energy crisis levels and wholesale market risks remain. Energy suppliers need to continue to actively support customers struggling to pay bills, while at the same time ensure their own financial stability. Energy suppliers also need to invest in their product and service offering to strengthen their position.
Suppliers will continue to diversify and strengthen their offerings in the growing low carbon technologies sector, including EV charging/tariffs, heat pumps, solar PV and smart home devices. With the roll-out of Market-wide Half-Hourly Settlement, expected in 2026, combined with the widespread adoption of smart meters, suppliers will be encouraged to launch more innovative smart tariffs and services.
Purchase Mintel’s full UK energy industry report for a complete analysis of the market, including market structure, company profiles of the market leaders, and what UK consumers want and why.
Expert Analysis from an Industry Specialist
This report, written by Claudia Preedy, a leading analyst in the energy industry, delivers in-depth commentary and analysis to highlight current trends in the UK energy market and add expert context to the numbers.
While fixed-rate energy deals have started to come back onto the market, incentives to switch suppliers remain limited. Thus, the return of competition to the retail market is expected to be slow.
Claudia Preedy
Senior B2B Analyst
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- Key issues covered in this Report
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EXECUTIVE SUMMARY
- Opportunities for the energy market
- Market dynamics and outlook
- Graph 1: electricity generation by type of fuel used, 2012, 2018 and 2022
- Graph 2: renewable electricity generation, by type of source, 2012-22
- Graph 3: number of active domestic suppliers, 2008-23
- What consumers want and why
- Graph 4: preference to use energy supplier with strong green credentials, 2023
- Graph 5: interest in an energy tariff that charges cheaper rates at times when there is low demand for energy, 2023
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ELECTRICITY DEMAND AND GENERATION
- Trends in electricity supply
- Electricity generation
- Graph 6: electricity generation by type of fuel used, 2012, 2018 and 2022
- Graph 7: renewable electricity generation in the UK, by type of source, 2018-23
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GAS DEMAND AND SUPPLY
- UK gas supply
- Wholesale gas prices
- Graph 8: average wholesale gas prices, forward delivery contracts, 2021-23
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FUTURE ENERGY MIX AND DEMAND
- National Grid ESO’s Future Energy Scenarios
- Future electricity demand
- Graph 9: annual electricity demand, by scenario, 2022-50
- Future potential energy mix
- Graph 10: projected installed electricity generation capacity (incl. storage and interconnectors), 2022, 2030 and 2050
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RETAIL ENERGY MARKET
- Market development
- Market structure
- Graph 11: number of active domestic suppliers, 2008-23
- Graph 12: domestic electricity supply market shares in Great Britain, by company, 2019-23
- Graph 13: domestic gas supply market shares in Great Britain, by company, 2019-23
- Energy tariffs and switching trends
- Graph 14: number of non-prepayment domestic gas customer accounts, by type of tariff, by supplier, 2023
- Graph 15: number of non-prepayment domestic electricity customer accounts, by type of tariff, by supplier, 2023
- Graph 16: number of domestic customers switching suppliers, by fuel type, 2019-23
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LEGISLATIVE AND REGULARITY ENVIRONMENT
- Government policy on reaching Net Zero by 2050
- The Labour Party’s energy policy
- Policy instruments supporting decarbonisation of the electricity systems
- Regulatory environment
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WHAT CONSUMERS WANT AND WHY
- Type of energy tariff
- Graph 17: type of energy tariff, 2023
- Attitudes towards energy suppliers and bills
- Graph 18: attitudes towards energy suppliers and affordability of bills, 2023
- Graph 19: interest in an energy tariff that charges cheaper rates at times when there is low demand for energy, 2023
- Graph 20: preference to use energy supplier with strong green credentials, 2023
- Graph 21: interest in getting an assessment of owns home energy usage, 2023
- Adoption of energy efficiency products and future intentions
- Graph 22: energy efficiency products installed in the last two years, 2023
- Graph 23: consumer intentions to install energy efficiency products, 2023
- Attitudes towards energy efficiency measures
- Graph 24: attitudes towards energy efficiency measures, 2023
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COMPETITIVE LANDSCAPE
- Competitive strategies in the retail energy market
- Launch activity and innovation
- Company profiles
- Graph 25: Centrica supply business revenue segmental analysis, 2022
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APPENDIX
- Supplementary data
- Report scope and definitions
- Methodology
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