In the late 1990’s the United Kingdom opened its doors to create a more deregulated energy market by allowing completion in what was a static closed market. To try and explain this, it means that the households and small businesses have range choices of who provides their gas and electricity. The increase in competition was planned to help drive down energy costs have not created as much choice as you might expect.
Before deregulation in the Uk energy market there was very little or no choice in who supplied you gas and electricity. This lack of choice for home owners and business to choose who provides their gas and electricity meant the government had to try and control these companies to stop them inflating energy prices. The main national suppliers were British Gas for gas and dependent on your location in the country there was regional Electricity Company.
British Gas used to be the monopoly energy supplier in the UK in the late 1990s. This means that they were the only supplier of gas to homes and business. The only other option was to have LPG gas tank more akin to rural homes.
Before the energy market deregulation in the UK there were fourteen regional energy companies that provided electricity to homes and business. This gave only one choice of gas and electricity supplier and they could fix the prices so you no choice in finding a cheaper deal.
The regulator Ofgem introduced the relaxed and open gas and electricity market in the UK in a number of stages. The first stage opened up the gas supply market to allow new gas companies to compete for business and try and under cut the main gas supplier British Gas. The next stage introduced more competition in the electricity market to give new electrcity suppliers a chance to supply electricity in to “host” regions.
The United Kingdom operates a fully open and deregulated energy market. This provide the consumer with a choice of who suppliers their gas and electricity to their home or their business. The choice is restricted to around 18 different energy suppliers.
Energy suppliers in the UK have a range of “tariffs” that they offer to the consumer. These vary from the more expensive pay as you go tariffs, to paper billing to the cheapest deals on the market, managing you bills online through their web sites.
The Uk energy market has seen prices increase year on year. To see what you could save on your gas and electricity bills try visiting SaveOnYourBills.co.uk.