Energy Companies

Energy suppliers are companies that provide electricity and/or natural gas to homes and businesses. In many regions, the energy market is deregulated, which means that customers can choose their energy supplier rather than being tied to a single utility company.

Here's how it generally works:

Generation: Energy suppliers purchase electricity or gas from producers who generate energy using various sources like natural gas, coal, nuclear, or renewable sources like wind and solar.

Distribution:

While energy suppliers provide the energy, the physical delivery (distribution) of electricity or gas to homes and businesses is handled by a separate utility company. This utility company maintains the infrastructure, such as power lines and pipelines, and is responsible for addressing outages or other service issues.

Supply:

These companies then sell the energy to consumers. They may offer different plans with varying rates, including fixed-rate plans (where the price per unit of energy remains constant) and variable-rate plans (where the price can fluctuate based on market conditions).

In a deregulated energy market, the utility remains the same regardless of the supplier chosen, but the supplier determines the cost and potentially the source of the energy. In contrast, in regulated markets, the utility often also serves as the sole energy supplier, setting the rates and handling both supply and distribution.

As of 2024, the UK energy market includes a variety of energy suppliers. These companies provide electricity and gas to households and businesses across the country. The market includes large, well-established companies as well as smaller, independent suppliers. Here’s a list of some of the major energy suppliers in the UK:

The “Big Six” Energy Suppliers:

1. British Gas – Part of Centrica plc, one of the largest energy suppliers in the UK.

2. EDF Energy – The UK branch of the French state-owned EDF Group.

3. E.ON UK – A subsidiary of the German energy company E.ON SE.

4. OVO Energy – Acquired SSE’s domestic retail business in 2020.

5. ScottishPower – Owned by Iberdrola, a Spanish multinational electric utility company.

6. Shell Energy – Formerly First Utility, now part of Shell, providing both gas and electricity.

1. Octopus Energy – A fast-growing, renewable-focused supplier.

2. Bulb Energy – Was one of the largest independent suppliers, though it faced financial difficulties.

3. Good Energy – A renewable energy company focused on green energy.

4. Green Energy UK (GEUK) – Specializes in renewable energy, particularly green gas.

5. Utilita – Specializes in pay-as-you-go energy plans.

6. So Energy – Known for its simple pricing and focus on customer service.

7. Pure Planet – A renewable energy supplier, backed by BP (ceased trading in 2021).

8. Co-op Energy – Partnered with Octopus Energy, focusing on community energy initiatives.

Other Major Suppliers:

Smaller/Independent Suppliers:

1. Green Network Energy – An Italian-owned energy company (ceased trading in 2021).

2. Igloo Energy – Focused on energy efficiency (ceased trading in 2021).

3. Outfox the Market – Known for offering competitive pricing.

4. Together Energy – Acquired Bristol Energy’s customers in 2020 (ceased trading in 2022).

5. Neon Reef – A small supplier focusing on renewable energy (ceased trading in 2021).

6. People’s Energy – A community-focused energy supplier (ceased trading in 2021).

1. Ecotricity – Focuses on renewable energy, particularly wind and solar.

2. Yorkshire Energy – A smaller, regionally focused energy supplier (ceased trading in 2020).

3. Robin Hood Energy – A not-for-profit energy company, owned by Nottingham City Council.

Regional and Niche Suppliers:

This list reflects a snapshot of the energy market in the UK. However, it’s worth noting that the energy market is dynamic, with companies entering and exiting the market, particularly in recent years due to market volatility, regulation changes, and economic pressures. Some of the suppliers mentioned have ceased trading, been taken over, or entered administration. Therefore, for the most accurate and up-to-date information, it’s advisable to check directly with Ofgem, the UK’s energy regulator, or to consult current market listings.

Becoming an energy supplier in the UK involves several steps, including obtaining the necessary licenses, setting up the infrastructure, and adhering to regulatory requirements. Here’s a general overview of the process:

Obtain the Necessary Licenses

Electricity Supply License: You need to apply for an electricity supply license from Ofgem, the UK's energy regulator. This license allows you to supply electricity to homes and businesses. Gas Supply License: If you plan to supply gas, you also need a gas supply license from Ofgem. Application Process: The application process requires you to provide detailed information about your business, including financial stability, technical capability, and business plans.

Meet Regulatory Requirements

Compliance with Industry Codes: You must comply with various industry codes, such as the Balancing and Settlement Code (BSC) for electricity or the Uniform Network Code (UNC) for gas. These codes govern how energy is traded and managed in the UK. Supplier of Last Resort (SoLR) Scheme: You must participate in the SoLR scheme, which ensures that customers are still supplied with energy if their supplier goes out of business.

Set Up the Infrastructure

Billing and Customer Service Systems: Establish robust billing systems and customer service operations. You'll need to manage customer accounts, handle billing inquiries, and ensure accurate meter readings. Energy Procurement: Develop a strategy for procuring energy, whether through direct purchase from generators, participation in the wholesale market, or both.

Establish Relationships with Key Stakeholders

Distribution Network Operators (DNOs): Work with DNOs who manage the physical distribution of electricity to ensure your customers receive energy reliably. National Grid: For electricity, you'll need to coordinate with the National Grid, which manages the transmission network. Gas Transporters: For gas supply, you need to work with gas transporters who manage the pipelines that deliver gas to homes and businesses.

Adhere to Customer Protection Standards

Code of Practice: Adhere to the Code of Practice set by Ofgem, which includes standards for marketing, billing, customer complaints, and more. Vulnerability Measures: Implement measures to support vulnerable customers, ensuring they have access to affordable energy and additional support services if needed.

Financial and Operational Planning

Capital Requirements: Ensure you have sufficient capital to cover initial costs, including procurement of energy, setting up operations, and meeting regulatory requirements. Risk Management: Develop strategies to manage market risks, such as fluctuations in energy prices and regulatory changes.

Market Entry and Branding

Marketing Strategy: Develop a marketing strategy to attract customers, including competitive pricing, green energy options, or superior customer service. Customer Acquisition: Set up channels for customer acquisition, such as online sign-ups, partnerships, or door-to-door sales.

Join the Energy Ombudsman Scheme

As a supplier, you must be a member of the Energy Ombudsman scheme, which handles disputes between suppliers and customers. This ensures that customer complaints are dealt with fairly and efficiently.

Launch and Continuous Compliance

Launch Your Services: Once all the above steps are completed, you can start supplying energy to customers. Ongoing Compliance: Regularly monitor and ensure compliance with all regulatory requirements, update your practices as needed, and participate in industry consultations and updates.

Becoming an energy supplier in the UK is a complex process that requires significant planning, resources, and compliance with a wide range of regulations. However, it can be a rewarding venture if done correctly, allowing you to compete in one of the most dynamic energy markets in the world.

Energy Companies