SwiftSwitch’s Comprehensive Overview of the UK Energy Market

The energy market is forever changing. It is a naturally chaotic environment. But, if you approach it well versed and aware, switching suppliers and securing the correct deal for your business should not be too much of a hard task. It should be easy; which is where SwiftSwitch steps in. We are your energy boffins.

Business energy is in no way dissimilar from domestic energy in terms of function. The way these products are packaged however, tends to differ. This is because businesses use their energy differently. For example, energy consumption depends on the size and the type of a business – a large industrial business with many factories will not want the same energy deal as a small, independent hairdressers. And remember, gas and electricity are always sold separately which means that you do not need to buy both products with one supplier. In fact, the best gas and electric deals are often found with different suppliers. It does not necessarily pay to ‘bung the deals together’!

To most people the energy market will appear to be a complicated and laborious landscape to navigate. But, it can be broken down into three simple processes:

  • Generating Electricity
  • Transporting Gas and Electricity
  • Distribution of the Gas and Electricity
The gas and electricity markets in the UK are privatised – which enables customers to pick their supplier. The competitive nature of the current market means that cheap deals are always available, which means that business customers should not sit back and accept paying too much. If SwiftSwitch discover that the latter applies to you, we will work to rectify the situation by finding you a more appropriate, cost-effective deal (not all suppliers will be forthcoming with them!)
Generating Electricity
The majority of electricity is generated from power stations that are connected to the national transmissions network. Electricity is also generated in lower amounts by smaller power stations that are connected to our regional distribution networks. The companies working within the energy sector range from large multinational sized ones, to low-key family-run ones.
Transmission
Transmission networks carry high voltages of electricity across the length and the breadth of the country, and the entire system is run by the national grid. The national grid is responsible for ensuring that supply meets demand on a second-by-second basis.
Distribution
Unlike transmission networks, distribution networks run at much lower voltages and only take electricity from the transmission systems to businesses and homes.

Regulation

The Office Gas and Electricity Markets Authority operate through (Ofgem). Ofgem regulate the electricity and gas markets. Ofgem’s job is to protect consumers’ interests through the promotion of competition. As long as competition can thrive, consumers will be able to find fair and cheap deals.

  • Keep the market competitive
  • Secure the supply and sustainability for all customers, business and domestic.
  • Supervise Development of Markets
  • Regulate and introduce Government Schemes
  • Work independently of the government

As a business consumer, you have a right to voice any concerns or issues you may have relating to Ogfem’s policies or functions. The number you can reach them on is: 020 7901 7295Alternatively, you can email them at: consumeraffairs@ofgem.gov.uk

If you wish to make an enquiry or a complaint about an energy company and you cannot find their details or need support, you can contact the Citizens Advice consumer service on 03454 040506Alternatively, you can visit their website: www.citizensadvice.org.uk

All details can be found on Ofgem’s website: www.ofgem.gov.uk

We would love to hear from you. If you want to save money, time and hassle on your utilities, get in touch and have a chat with one of our energy experts.

You can call us on 020 7701 5189 or email us at hello@swiftswitch.co.uk