The GB domestic energy market is fragmenting rapidly, with a plethora of new entrants. The Big Six incumbents, who have dominated the industry, are haemorrhaging market share to their competitors, some of whom are loss-making or only marginally profitable. Some view this situation as unsustainable, with the supposedly financially fragile independent suppliers likely to wilt if the external environment becomes less benign. We disagree. On our analysis, there is a diversity of new entrant business models, appealing to different consumer segments. The diversity of the Independents creates resilience; some Independents will fail, but others are already succeeding and yet more will succeed. In contrast, we believe that business models based on high prices to disengaged customers are unsustainable in the face of competition, technology and regulation.
We seek to inform, to be interesting and to improve our clients' understanding of issues central to their own specific business decisions. We identify key trends and we seek to lead the debate not merely react to the news.