Blog
Service vs Sales – A dilemma for suppliers as the market reopens
With the prospect of a switching resurgence on the horizon, it will be interesting to see whether suppliers decide to chase the volume of new customers, or seek to prioritise customer retention. In short, many are likely to face a ‘Service vs Sales’ dilemma – bringing a degree of unpredictability to the market.
Customer indebtedness is set to worsen this winter
Customer indebtedness is growing at an unsustainable rate. And it’s projected to get worse as we head into winter. Analysis from our Market Insights supports this, highlighting three key points, which we’ve explored further in this blog.
The Energy Price Cap – A tragedy in four acts
The Energy Price Cap was introduced by Ofgem back in 2019, to ensure “that prices for people on default energy tariffs are fair and that they reflect the cost of energy". If the goal was to prevent loyalty premiums (which was the original stated intention), then we’d argue that a relative price cap would have been better.
Market debt levels continue to rise with prices
Market debt levels have continued to rise as the the price cap rises - however we've also seen customers absorb a greater proportion of the price increases than expected. This isn't all good news - we're potentially starting to see a latent effect where customers are running out of options by which to cover the increased costs which will give rise to increased debt levels in Q4-23 / Q1-24.
Winter bills to rise as the Price Cap falls – Here’s why
Ofgem have announced the Price Cap for Oct-Dec 23 at £1,923 in line with BFY Group projections. Although this represents a decrease for the second consecutive quarter, we’re expecting to see customer bills moving in the opposite direction this winter, due to the removal of government support.
What is happening to customers bills each quarter?
With lots of talk of the Price Cap falling, what is happening to customers bills each quarter?
Is your operation ready for increased customer switching?
Change of supply - it's been a while. As wholesale Energy prices continue to fall, suppliers should be making sure they're operationally prepared for a material increase in switching, which we're expecting to see from the announcement of the October Price Cap onwards.
Changes ahead for consumer standards – Reacting to Ofgem and FCA guidance
It's time for a shake-up in consumer standards. That's the key message from Ofgem after launching its Consumer Standards Statutory Consultation. New rules are being introduced which will have immediate implications for suppliers, as we approach another challenging winter for customers.
Dropping Prices - Rising Bills. Energy Price Cap Analysis.
Based on the latest update from Ofgem , the BFY Group team have modelled that prices will remain around £2,000 per year. The forecast £450 reduction in the headline rates won't be felt as a £450 saving customers pockets, this is because OFGEM have to articulate an annual value based on prices for a quarterly window.
Energy Bills Projected To Rise Despite EPG Extension
It's great news that Jeremy Hunt has extended EPG for a further 3 months at £2,500 - however the amounts customers pay is still projected to increase.
Retaining and attracting customers in a changing Energy market
In recent weeks, wholesale energy prices have started to fall, and Ofgem have announced a reduction in the energy price cap. If wholesale trends continue, we’re likely to see a renewed increase in sales activity and customer switching.
Understanding the true costs to customers of the Energy Price Cap
In our latest Market Insights report we review the true cost to customers of the Energy Price Cap - and whilst the headline levels of the Price Cap are huge, the real costs felt by the end customer will be lower - driven by both Government support, and annualising the Energy Price Caps over 12 months of costs.
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