10 medium suppliers hold almost 25% of domestic market: There has been strong growth by the medium suppliers in the second quarter, according to Cornwall Insight’s ‘Domestic market share survey’. This supplier type has added over half a million energy accounts and changed the make-up of the domestic energy suppliers.
In fact, research from Cornwall Insight reveals that ten medium-sized suppliers now hold 23% of the domestic energy market.
Katie Hickford, Analyst at Cornwall Insight, said:
“Since First Utility and Utility Warehouse became the first challenger suppliers to exceed 250,000 energy accounts in 2014, a further 17 have surpassed our threshold for medium suppliers. Tonik Energy is the latest addition to the group, entering it in Q220, with another small supplier set to join the medium group soon.
“Over the last six years, the suppliers in this group have taken different strategies to grow, using both organic growth and customer acquisition strategies. Some suppliers have used supplier exits as an opportunity to grow, changing the face of the retail landscape in the process.
“Octopus Energy led this quarter for customer growth of medium suppliers. They acquired small supplier ENGIE’s 70,000 domestic customers as well as recording strong organic growth. Shell Energy followed with the second-highest quarterly gains, acquiring Green Star Energy and reaching 3% energy share of the market. At the same time, Bulb added GnERGY’s 9,000 customers through the supplier of last resort mechanism.
“With the average electricity churn rates typically higher for small and medium suppliers (SaMS) standing at 32% compared to large suppliers at 18%. The challenge for these suppliers now is to retain the customers they have gained.”
10 medium suppliers hold almost 25% of domestic market – Post kindly provided by Cornwall Insight