Energising the Market: A country comparison of consumer engagement in the retail energy market

Article

This briefing note reviews the main features of retail energy markets in five countries – Germany, Sweden, France, the US (California) and Australia – to extract relevant examples of consumer engagement in these countries that could be applied to the UK market. To achieve this, we suggest how approaches from other countries could be implemented in the UK, with a particular focus on the role Ofgem and Price Comparison Websites (PCWs) could play.

According to a report for the EU’s Agency for the Cooperation of Energy Regulators (ACER), the UK was ranked as having the third and fourth most competitive markets in the EU for electricity and gas respectively. The scoring is assessed based on a broad range of criteria, including market concentration, customer switching and pricing.

This may come as a surprise given that, compared to other industries, the level of consumer trust in the energy market is low – although it has recently risen slowly. In a situation where the UK electricity and gas markets both score highly for competitiveness, but consumer trust is low to the point that a form of price cap is being considered by Ofgem (acting on government instructions), it becomes even more important to encourage consumers to participate in the market. The research draws on experiences from the five other countries mentioned in order to put forward ideas for how this can be achieved.

Related items

  1. A group of children sit around a table at primary school. A little boy smiles into the camera

    Breaking the cycle: A blueprint for special educational needs and disability (SEND) reform

    The education system is not working well enough for children with special educational needs and disabilities (SEND), their families, or the professionals delivering support.
  2. A group of young women laughing sitting around a cafe table

    Making space: Meeting the needs of young women and girls through Young Futures

    This is a critical moment for the government’s delivery of Young Futures Hubs, which can transform outcomes for young women and girls. 
  3. Doctor with patient for consultation, medical advice or procedure at clinic

    Building the foundations for transformation in the NHS

    The government has published a bold 10-year plan to transform England’s health system which, if fully delivered, will make the NHS of tomorrow look radically different from today’s service.