Question

State two reasons for the crumbling of the Big Six suppliers of electricity in Great Britain

Answer 1

Answer:

1) Competition from other suppliers

2) Low tariff prices

Explanation:

The reasons for the crumbling of the Big Six suppliers of electricity in Great Britain were:

1. Competition from other suppliers where averagely five new suppliers enter the market. Today there are over 100 suppliers; thus there is a loss of customers for the big six. Elexon data indicates that from March 2016 to June 2017 they lost 1.22 million electricity customers.

2. Low tariff prices over the past quarter from new suppliers who have regularly offered the 15 cheapest tariffs to domestic customers in Great Britain. The recent announcement of a standard variable tariff price cap further contributed to the crumbling of the Big Six.

Answer 2

Crumbling of Big Six in Great Britain

Explanation:

The Big Six are British Gas, EDF Energy, E.ON, Npower, Scottish Power, and SSE. The three reasons for the crumbling of the big six suppliers of electricity in Great Britain are as follows:

1. Increase in competition due to the rising number of independent energy suppliers. These independent energy  suppliers did not generate their own electricity instead they purchased it from wholesale markets.
2. Tougher government regulations towards the supply of electricity made it difficult for the Big Six to comply with the new rules.
3. The government raised the price caps designed in order to restrain the dominance of the Big six.