On 31 October the energy regulator Ofgem published its first annual assessment of GB energy markets since the Competition and Markets Authority (CMA) concluded its energy market investigation in June 2016.
The report covered the outcomes that Ofgem expects the market to deliver for consumers, including lower bills, better social outcomes, lower environmental impacts and improved reliability and safety. Large businesses were found to be benefitting from competition in the sector, but small and micro-businesses continue to be worse off. This is due to larger business consumers having the ability to negotiate better deals with suppliers. In contrast, smaller firms tend to pay more for their energy and switch less often. In general, average business electricity prices are around 50% higher for very small firms than for large or very large consumers.
The report also argued that security of energy supply is essential for businesses to work effectively. To ensure this happens Ofgem said that the energy system must become resilient to demand and supply shocks.
Small and micro-businesses could benefit greatly from taking part in our energy buying baskets, as this will allow them to pool their purchasing power with other businesses and receive keener prices on their energy. For more information on our next basket please contact us on 0333 1234 313 or email us at email@example.com.