In 2008, ten years after the start of the competitive energy market, the Office of Gas and Electricity Markets (Ofgem), explored the operations of the gas and electricity markets related to how well they have adapted to the competitive market and the level of customer service now in place.  Given the surge in energy prices lately, this investigation was of particular interest.

Some of the positive changes brought about by the competitive market are a greater variety of available fuel programmes, diminishing fuel costs, and enhanced customer service.  The changes instituted by the energy markets during the past ten years have resulted in huge benefits to the public, but there are still some concerns that need further attention for an effective competitive market and high quality customer service.

Most residential customers in Great Britain receive their gas and electricity service from The Big 6.  There is no evidence that these large energy companies participate in a cartel, but the presence of The Big 6 does seem to restrict the development of new energy companies.  While new energy businesses have emerged during the post-monopoly years, few have managed to remain, and only .03 percent of the gas and electricity customers currently use their services.  With very few new energy businesses entering into the market, energy plans and programmes for customers are limited.

The competitive energy market allows small business and residential customers to change their gas and electricity suppliers.  Almost 100% of gas and electricity customers reported that they knew there was an opportunity to switch energy suppliers, and 77% of customers that decided to exercise this option rated their experience as being satisfactory.  Even though the vast majority of customers are aware of their option to switch energy suppliers, a mere 17% of these customers actually decide to switch. 

The majority of customers are wary of making a decision to switch or do not believe they have the knowledge to choose the best deal.  Some customers do not have Internet access and are unable to successfully compare the available deals and make well-informed decisions.   Detailed customer awareness programmes and a simplified switching process are necessary to improve this area of concern.

Gas and electricity suppliers use competitive prices to interest potential customers in their services.  There are many energy plan deals available to domestic and small business customers, including dual fuel packages, stable or capped price tariffs, packages for green energy, and energy service deals.  One of the problems with the dual fuel packages is that they are not available to customers who are not on the gas grid, and these customers typically pay more for their energy than other customers do.  Another area of concern is that customers that choose a low price introductory plan do not understand that the low price is in effective for a limited time.