Industry Analysis & Industry Trends
Companies in the Gas Supply industry purchase gas from the wholesale market and sell it to end users via the distribution network. Gas is used mainly for heating, but also to produce electricity. Wholesale prices are closely linked to trends in global markets because the United Kingdom is increasingly dependent on imported gas, as domestic supplies in the North Sea and the East Irish Sea dwindle. The industry's performance is also affected by weather trends. Colder weather increases demand for gas for heating purposes, while warmer weather reduces demand for heating, which weakens industry revenue. Industry revenue is expected to decrease at a compound annual rate of 0.4% over the five years through 2016-17 to reach £14.3 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Gas Supply industry has a high level of market share concentration. The four largest firms - Centrica's British Gas, E.ON, SSE and RWE Npower - are expected to generate 75.1% of industry revenue in 2016-17. The industry is dominated by six major firms, which account for an estimated 91.3% of gas sales in the United Kingdom. These businesses are all based in Great Britain and are regulated by Ofgem. Industry concentration is therefore high, although it has declined since the introduction of full retail competition in 1999. Since then, customers have been able to shop around for their gas and electricity supplier. Concentration has fallen further in the past five years as increasing numbers of independent suppliers have captured a greater share of the industry.
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