In this series we are exploring the rapidly changing world of Energy Suppliers, and the impact of Suppliers on Energy Markets. It is my hope that through this series you will become more familiar with the world of Energy Suppliers and the wholesale/retail markets they serve. In particular I am looking at the impact that Energy Suppliers can have on Net Energy Metrics, and specifically the impact that the wholesale / retail markets can have on the ERCOT (earlier referred to as the National Electricity Pricing Registry) for our electricity supply. If you would like additional information about this industry please visit our website.
In this series we are exploring the change that Energy Suppliers will make to the markets that regulate the electricity supply. Back in 2021 Gartner projected that in the next decade the largest electricity company would be an Uber-type behemoth which would not have assets but would simply manage consumers and energy suppliers in a competitive marketplace. In 2021, however, 10 different companies started efforts to break away from the NV Energy monopoly. Among them SolarBotanic and Kebabot, two of the largest Energy Suppliers. It is important for me to point out that among those companies only SolarBotanic poses a threat to NV Energy’s future dominance of the markets for electricity and other forms of energy.
However, it is worth noting that despite this early warning there are reasons to believe that the trend for Energy Suppliers could reverse in the future as well. There is evidence that utility companies are increasingly less willing to invest in improving the efficiency of their operations. For example just recently there was news that the UK’s biggest electricity provider had admitted that it is planning to close its gas power stations. This comes as no surprise given the severe cutbacks that utilities have been forced to undertake in recent years. In this context it is worth remembering that the chief executive of one of the leading Energy Suppliers has said that the decline in oil and gas reserves will continue, making it harder for the UK and other countries to meet their energy usage targets.
At this point there are two potential motivations for the UK government to support the growth of alternative fuel technology. The first comes from the need to protect the environment and create jobs in Britain and Europe. The second motivation relates to improved competitiveness and the creation of new economic activity in the UK and Europe. It is clear that the UK and Europe need to develop a more flexible, adaptable and competitive business model for the future. In this context it would make sense for the Government to look again at the role that energy suppliers play in their national energy markets.
suppliers of gas and electricity
The industry experts recommend two approaches to promoting competition in the electricity markets. The first is for regulators to take a more interventionist stance and pass laws that prevent any price and service providers from being able to manipulate the wholesale gas and electricity prices. The second approach would be to allow consumers more choice by letting them trade registration between suppliers of gas and electricity. This would allow customers to switch between suppliers without fear of being “thropped” or charged additional costs for changing providers. It is also hoped that this will encourage energy suppliers to offer competitive rates to customers.
However there is some way to go to addressing the problem of increased levels of electricity prices and new reports suggest that the lack of customer care support by energy suppliers is one of the main factors behind the problems. It is also suggested that changes in the law could be introduced to ensure that energy suppliers cannot increase their prices overnight. It is estimated that around ten per cent of electricity supplied in the UK now comes from different energy suppliers. By following the links below you can find out which suppliers provide the electricity you use and why you pay the amount that you do.