In the News
What do registered complaints tell us about competition in the Energy market?
Campaign organisation Citizens Advice have released their latest figures showing the number of complaints received (per 100,000 customers) in the energy market. The 'league table' can be seen here.
Citizens Advice release these figures so that customers are more informed. An energy user can compare complaint levels and use this as supporting a judgement about whether to switch supplier or not.
In this way, the table helps to counteract the negative impact of the oligopolistic nature of the energy market, which may include poor service (as competition pressure is lower than a truly competitive market). Add this to regulation and the improved ability to easily switch between suppliers it would seem that the market is becoming more competitive.
Viewers of the table may be surprised to find that there are 21 listed companies - not just the 'Big 6' suppliers. This suggests a greater level of competition or contestability than many might expect (although a Year 2 Economics student would still want to see the concentration ratio in the market!).