Upsurge in Independent Energy Supply Clients

Apr 20, 2016

Utiligroup – a leading provider of innovative SAAS solutions to the utilities and energy industry demonstrates strong success in its enablement of the independent energy supply sector and further growth by its sector challenger clients.

Adding to the market entry of thirteen new entrant suppliers last year, Utiligroup has contracted with a further three new energy supplier entrants to the UK competitive market in the first two weeks of the current business year and sees continued strong momentum towards expanded market entry.

Customer switching in the UK energy supply market is at its highest since 2007 with a trend building towards the new entrant challengers who have emerged at pace since 2009 with Utiligroup underpinning >80% of these through its software suite, managed services and applied expertise. The independent energy supply sector accounts for more than 15% of the total dual-fuel customers in UK with significant growth potential to continue the trend of gain from the traditional large incumbents.

The independent supplier challengers occupy one sixth of the market share, which is the size of one of the large incumbents originally. With more services to support switching, growing online social channels and service innovation, the independents are connecting with customers and creating the next basis of energy supply. With nearly a sixth of the market with independent challengers, many utilities are requiring a new business strategy as traditional models of centralised, predictable energy production and consumption are making way for an innovative and more flexible energy system requiring greater focus and engagement on consumers.

Utiligroup is supports 46 energy suppliers which grow continually to deliver more choice, diversity, differentiation and approaches to deliver long term customer value from both national and local models. Reflecting this increased distinctiveness Utiligroup believes there is room for all from the largest >1M customer base suppliers through to the smallest niche entrants to deliver services that are trusted, beneficial and empowering to end customers over time.

Evidence of increased competition is expected to please the Competition and Markets Authority which last month proposed a price freeze for 4 million households as part of proposals to end the domination of the main suppliers.

Utiligroup continues its client focus to underpin the market operations across its software and managed service portfolio. Its Supplier in a Box™ facilitates optimised market entry and participation, customer service excellence, financial performance optimisation, competitive insight and growth enablement in line with market change. Through its managed service business Utiligroup manages over 2.5M meters in independent supply plus a large portfolio of meters for meter agents and providers. The managed services leverage Utiligroup’s future enabled solution architecture, scalable market interaction solution suite and best practice certified consulting methods to provide automated ISO accredited managed services, complemented by expert industry resource to ensure our clients are at the forefront of market compliance and competitive operations.

The Utiligroup solution suite spans management of market interaction, demand forecasting, metering agent management, trading, integration into portal, customer care and billing partners, plus added value services to optimise imbalance settlement performance, revenue assurance and customer insight through data analytics.

Mark Coyle, Strategy and Marketing Director at Utiligroup commented “Utiligroup is empowering its clients to embark on their journey to create customer value from the new emerging market we call Energy 2.0 through industry change, customer expectation growth and new technology innovations. Utiligroup is delivering staged approaches for its clients to meet industry programmes such as Nexus for gas, DCC for Smart Metering, Faster Switching as well as Half Hourly Settlement into water competition. Utiligroup offers a managed path through industry change for its client base while embracing new technologies, data sources and customer expectation growth to drive the upcoming period of service innovation.

There is wide recognition that the door is open to new energy Suppliers with DECC and OfGEM both focused on ensuring market participation and growth is encouraged. Utiligroup is proud to have played an enabling role in the progress to date and is ready to support further growth as the UK energy market continues to be one of the most dynamic globally. The Commission of European Energy Regulators recently considered barriers to entry and concluded that Data Management is perceived as one of the key blockers which Utiligroup has helped mitigate in the UK and continues its work to further remove any perceived barriers to entry, excellence, profitability or growth. We see a continued range of potential entrants and encourage all those considering this area to contact us today”.


Media Contacts:

Neelam Barber at Utiligroup

Tel: 01772 770280




Posted by Dom Benabda