The illusion of competition within the energy market.

For prices to fall significantly output must be such as to achieve economies of scale and in highly competitive markets this is often seen as a barrier to entry.  The UK energy market has seen an increase of competition over the last fifteen years, but as the  most recent report and video below highlight 95% of UK households are supplied by six producers.  The concern is that the ‘big six’ are playing less than fairly.  Inertia exists within the market resulting in less and less consumers switching energy suppliers and this can be attributed to asymmetrical information and collusion.  Solutions range from breaking up the ‘big six’ to introducing price controls but with demand forever increasing where will the large amounts of finance come from to invest into producing such an important commodity?

the big six      competition and energy


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