The \”big six\” energy firms were last night accused of maintaining a \”stranglehold\” over millions of consumers, after new figures showed that they each control more than two-thirds of the market in different regions across the UK.
The official figures show that companies supplying electricity to homes where they inherited the network from the former utility boards are operating a near monopoly, making a mockery of the idea that customers routinely switch firms to get better deals.
70% of a geographic market is less of a monopoly than the 100% they used to have. Showing that some have indeed switched.
Anyway, what matters is not market share. It\’s whether that market share is contestable. Having people who could conceivably nick your customers keeps you in line just as people actually nicking your customers does.