From February 2008 to September 2008, the Office of Gas and Electricity Markets (Ofgem) conducted an investigation into how well the gas and electricity markets are operating with respect to the competitiveness of the markets and perceived customer satisfaction following the elimination of the energy supply monopoly ten years ago. The recent spike in fuel prices is cause for increased attention to the operations of energy suppliers.

Some of the positive changes brought about by the competitive market are a greater variety of available fuel programmes, diminishing fuel costs, and enhanced customer service. The changes instituted by the energy markets during the past ten years have resulted in huge benefits to the public, but there are still some concerns that need further attention for an effective competitive market and high quality customer service.

Most residential customers in Great Britain receive their gas and electricity service from The Big 6. There is no evidence that these large energy companies participate in a cartel, but the presence of The Big 6 does seem to restrict the development of new energy companies. While new energy businesses have emerged during the post-monopoly years, few have managed to remain, and only .03 percent of the gas and electricity customers currently use their services. With very few new energy businesses entering into the market, energy plans and programmes for customers are limited.

Domestic and small business customers have the flexibility to switch gas and electricity services. Ninety-six percent of gas and electricity customers are aware of the option to change energy suppliers, and 77% of customers that have switched suppliers were satisfied with the process. While almost all customers understand they can switch suppliers, only 17% follow through with making a change.

Most customers stated that they are fearful of the consequences of making a change and do not believe they have adequate information to make the best selection. Lack of Internet access restricts some customers because they do not have the means to review all the plans and programmes. Actions in the areas of increased customer awareness and an improved switching process are required to address these concerns.

Suppliers of gas and electricity offer competitive prices in order to draw customers to their businesses. Domestic and small business customers have their choice of incentive and reward deals, dual fuel packages, fixed and capped price tariffs, and green energy and energy service deals. In the case of dual fuel offers, customers that are not a part of the gas grid cannot benefit from this special pricing and are consequently charged higher prices for their energy consumption. Some of the lower-priced deals are in effect for limited periods, and customers are sometimes unaware of the pending rate increases.