Research by Citigroup investment bank has suggested that the UK’s largest energy suppliers may lose up to a quarter of their customers and see a £500 million per year loss of collective profits, because of increasing competition from small energy suppliers.
Blue & Green Tomorrow is currently running a crowdfunder to ensure its survival. Please pledge.
The group said that growth of smaller competitorsm and also Ed Miliband’s pledge to freeze energy prices, are factors that can drive the loss of a quarter of the big six’s customers and a subsequent profit drop.
The report, UK Energy Policy – Unwinding the Big 6, says, “Due to increasing competition we see the market share of the ‘Big 6’ in energy supply declining from 98% in 2013 to below 70% by 2020.
“When combined with declining demand and lower margins the total profit pool available to the large energy suppliers could fall [by about] 40% from [about] £1.2bn in 2013 to just £700m.”
The report adds that consumers will still face high energy bills, as the average dual-fuel bill would be around 20% higher by 2020 because of inflation, rising infrastructure costs and the effects of green policies.
The ‘big six’ – Centrica, SSE, ScottishPower, EDF, npower and E.ON – have come under increased scrutiny from both consumer groups and politicians over the past year as rising energy bills and customer dissatisfaction caused a record number of consumer to complain and move towards smaller energy suppliers.
Complaints to the big suppliers reached a peak of 1.7 million in just three months in June, with renewable energy suppliers such as Ecotricity and Good Energy both seeing their satisfied customer base expanding.
The big six companies were recently told to give back £153 million to customers, money that was left in closed accounts after they switched supplier.
Photo: Nayu Kim via Flickr
Like our Facebook Page
Strange Ways the Sporting World Impacts the Environment
The Future of Cryptocurrency is Eco-Friendlier than the Present
Why Bill Gates Is Wrong on the Climate Impact of Bitcoin
Everything You Need to Know to Create an Eco-Friendly Nursery
4 Environmental Benefits of Using A Buckwheat Pillow
Eco-Friendly Ways to Dispose of The Office Furniture!
7 Huge Advantages of Using Solar Power at Home
5 Important Changes to Become An Eco-Friendly Nicotine User
4 Great Ways to be a Committed Eco-Tourist While Flying
7 Basic Types of Forex Charts Ethical Investors Must Understand
How to Make Your Ecommerce Business More Eco-Friendly?
How Can Social Media Help In Promoting Sustainable Lifestyle?
Luxury Development for The Ultra-Rich Causing Climate Change Conundrum in Barbuda
How Does Bitcoin Mining Work and is it Eco-Friendly?
Is Gen Z Ahead of Millennials in Terms of Eco-Investing?
Four Reasons Why Buying Used Cars Is the Way to Go Green
There is no Planet B: The Growing Importance of ESG
Wonderful Environmental Monitoring Tips to Keep Indoor Air Clean
The Tremendous Benefits of Investing in Energy-Efficient Windows
4 Morning Productivity Tips for Green Entrepreneurs that Are Night Owls
- Features10 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features7 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Features8 months ago
5 Simple Ways To Create A Greener And Healthier Home
- Environment11 months ago
The Benefits Of Sustainable Agriculture For Farmers