Question
To ask the Secretary of State for Energy and Climate Change pursuant to his statement of 2 December 2013, Official Report, column 627, on energy bills, what the evidential basis is for the statement that the Government is increasing competition in the energy market.
Answer
Since 2010 eight new suppliers have entered the domestic gas and electricity supply markets. While in 2011 there were no independent suppliers with a customer base greater than 50,000, there now are three independent suppliers with over 100,000 customers. Last month Telecom Plus, with a customer base of around 770,000 customers, announced plans to operate as a licensed supplier from early next year.
The Government has provided legislative backing to Ofgem's reforms to the domestic retail gas and electricity markets and the wholesale electricity market, which will enhance competition further. Ofgem's retail market reforms are introducing a simpler tariff framework and clearer information to help domestic consumers identify the best deal for them. In addition, Ofgem's proposed reforms to the wholesale electricity market will increase liquidity which will in turn improve competition in the
retail electricity market. The Government is also working with the industry to speed up the change of supplier process.
The annual competition test announced in the Annual Energy Statement will ensure that the market is kept under review and where barriers to competition are found the independent regulators are able to act decisively.