The recent influx of smaller energy companies is disrupting the market. There are now 60+ energy suppliers in the UK market – a fourfold increase compared to a decade ago. These energy providers have been credited with opening up competition in the energy space, leading to better deals for customers and much-improved switching rates. More than half a million customers switched to different electricity suppliers in September 2018: the highest number of switches in a month so far this year. And start-up energy companies such as Octopus and OVO energy are offering 100% green electricity, allowing consumers to choose energy solutions which are aligned to their environmental concerns.
Peer-to-peer energy trading is also a model that is set to benefit end users. The model which is still in development, will allow for producers and consumers to trade electricity directly, rather than selling to, and buying from the grid. In addition, the advancement of battery technology and cheaper batteries is going to allow more consumers and businesses to install more effective, smarter battery systems on their premises. Just think what the batteries in laptops were like 10 years ago. Battery units are now cheaper, lighter and more efficient. These great advances in battery technology are likely to benefit consumers in and out of home.
This is all good news for the consumer. The mix of new services and business models such as peer-to-peer energy trading, home energy storage, smart tariffs should drive down bills.
Electrification is gaining pace, and this represents an opportunity for significant reductions in energy bills for consumers. We are looking forward to working with more house builders as the shift towards electrification quickens and demand for sustainable solutions continues.