solar pv systems uk
Just like supermarket chains, business electricity retail is dominated by a few major players who share some 96% of the total market. However, rather than compete head-on for market share, they appear only compete for a small percentage of customers at the peripherals.
They attract these new customers from each other by offering competitive ‘new customer only’ introductory rates, quickly reverting to standard rates (and sometimes more), when contracts roll-over after the first year or so. These practices are not dissimilar to the loss-leaders used by supermarkets to attract customers into the store where they are likely to spend much more on non-discounted goods.
Although showing very similar market structures now, these sectors got to this position in very different ways. The grocery sector was originally fragmented with no major players really dominating until the emergence of supermarket chains. Whereas, electricity was monopolised by regional suppliers and de-regulation simply served to reduce the number of suppliers still further, encouraging competition only amongst each other nationwide.
On one hand we have a market which was previously competitive with many suppliers that have been squeezed by ever-increasing concentration. So much so that the top three supermarket chains now have over 50% of the total market, with the market leader alone claiming 30%. On the other hand you have a market where efforts to expand the number of suppliers have been stifled by the barriers to entry and the sheer power of the incumbent suppliers.
The jury is out on the positive or negative effects of supermarket dominance, however, whatever the rights or wrongs of where we are now, no one can deny that those who now dominate have arrived at their position through their own efforts and ingenuity.
But electricity is a different matter. Power has been bestowed upon the ‘big six’ major suppliers such as British Gas, Powergen and Npower to name a few, irrespective of who actually owns them today. And one might argue that power which has been gained in such a way reduces the drive or even the necessity to compete to win.
Evidence suggests that in the 90% or so of the business that don’t switch year on year price patterns for each supplier are extremely similar. One major player makes a marginal price move and the others simply follow over time.
The argument which supports the view that supermarkets actually create competition and push prices down by their huge economies of scale and purchasing power is also one which is somewhat lost in the electricity arena. Many would view the big six as inefficient legacies of the old system who are protected from real competition by the extremely tough barriers of entry.
Indeed, some of those smaller suppliers who have managed to scale these barriers have been able to demonstrate far more efficiencies aided by intelligent investment in technology. Unlike the supermarkets, there are no real efficiencies related to scale as most electricity retailers must turn to the same wholesale market for their supply. Some can cushion any market turmoil by relying on their up-stream activities when the retail market gets tough – a luxury which is simply not an option for the smaller supplier.
But businesses need not switch to the smaller supplier out of sympathy nor from fear of what might lie around the corner should the major players succeed in driving them out completely. They should switch simply because they are now able to get a much better deal and a deal with longevity. The smaller supplier with a plan to mimic the big six in order to attract new customers would be committing commercial suicide. What would be the point of fighting so hard to win new business and then letting it slip away at renewal?
Businesses can save significant amounts of money by switching to the smaller independent supplier now and can relax in the knowledge that they will continue to save money and receive an exemplary service into the bargain. Only then will the big players be forced to sit up and take note and who knows, we might just see the emergence of a truly competitive electricity sector in the future.
Nick Heath of Make It Cheaper, the UK’s leading independent price comparison and switching service for business electricity & business utility bills, offering massive cost savings on business electricity prices & business gas prices as well as a range of products including: insurance and telecoms.
Contacts
For interviews, images or comments contact:
Nick Heath
Marketing Manager
Email: heathn@makeitcheaper.com
http://www.makeitcheaper.com
0800 970 0225
Solarcentury, UK, Solar PV power for homes and businesses
|
|
Sunforce 60022 30 Amp Solar Charge Controller
$64.89 The Sunforce 60022 30 Amp Solar Charge Controller prevents overcharging of 12-volt batteries. It is intended for use with 12-volt solar panels, and can handle up to 30 amps of array current and up to 500 watts of solar power. The controller will continuously display the charging current or battery voltage on the LCD digital meter, and also automatically indicates the charged condition of your batt... |
|
|
Sunforce 39810 80-Watt High-Efficiency Polycrystalline Solar Panel with Sharp Module
$499.95 The Sunforce 39810 80-Watt High-Efficiency Polycrystalline Solar Panel Module will give you several more reasons to love the sun. It provides the power you need, while helping you save money and protect the environment. This panel is ideal for homes, cabins, remote power, back-up power, and 12-Volt battery charging. This panel comes with compatible wiring, accessories and a voltage tester to help ... |
|
|
HQRP KIT (85 Watt Solar Panel 85W Power 12V Monocrystalline 12 Volt, Solar 10A Charge Power Controller / Regulator 12V / 24V 10 Amp) + HQRP UV Chain / UV Radiation Health Tester
$232.91 HQRP 85 Watt (85W) Solar Electric Power Panel. The solar cells are encapsulated beneath high transmission tempered glass. The rear surface of the module is completely sealed from moisture and mechanical damage. Construction of the module minimizes weight while providing a durable, protective environment for the solar cells. Considering the fact that solar panels are supplied with MC connector, You... |
|
|
HQRP 85 Watt Solar Panel 85W Power (Size of 80 Watt / 80W) 12V Monocrystalline PV Module plus HQRP UV Chain / UV Radiation Health Tester
$202.91 HQRP 85 Watt (85W) Solar Electric Power Panel. The solar cells are encapsulated beneath high transmission tempered glass. The rear surface of the module is completely sealed from moisture and mechanical damage. Construction of the module minimizes weight while providing a durable, protective environment for the solar cells. Considering the fact that solar panels are supplied with MC connector, You... |
|
|
Photovoltaics: Design and Installation Manual
$29.00 Producing electricity from the sun using photovoltaic (PV) systems has become a major industry worldwide. But designing, installing and maintaining such systems requires knowledge and training, and there have been few easily accessible, comprehensive guides to the subject.Now, with Photovoltaics: Design and Installation Manual, a world-class solar energy training and education providerâSolar ... |
|
|
Photovoltaic Design and Installation For Dummies (For Dummies (Math & Science))
$13.49 The fun and easy way to get a grip on photovoltaic design and installationDesigning and installing solar panel systems is a trend that continues to grow. With 'green collar' jobs on the rise and homeowners looking for earth-friendly ways to stretch their dollars and lesson their carbon imprint, understanding photovoltaic design and installation is on the rise.Photovoltaic Design & Installation For... |
|
|
Solar Power Your Home For Dummies (For Dummies (Home & Garden))
$9.54 The bestselling alternative energy reference book in North Americaânow in an updated editionWant to take advantage of solar power in your home? Whether youâre looking to save on your energy costs by adding a few solar components or you want to build a solar-powered house from the ground up, Solar Power For Dummies, 2nd Edition takes the mystery out of this energy source and shows you how... |
