Electricity and Gas Retail Markets Report Q Information Paper

Transcription

1 Electricity and Gas Retail Markets Report Q Information Paper Reference: CER/17247 Date Published: 22/01/2018

2 Public/ Customer Impact Statement The purpose of this report is to provide industry, consumers and interested stakeholders with relevant information 1 on the development of competition in the electricity and gas retail markets in the first quarter of Market monitoring forms an important part of the CER s activities. The information collected through market monitoring helps to inform new policy and in the assessment of existing regulations. This report is part of a suite of other reports including monthly switching reports, annual reports and emerging reports based on new market monitoring data which the CER began publishing in The information on the retail markets as provided in this report gives an insight into how the retail market is functioning and any specific issues that need to be addressed. This report details changes in market shares in the electricity and gas retail markets up to Q and presents information about customer switching, renegotiations, prices and levels of discounts available. The report also provides up to date information on trends in disconnections, PAYG installs and debt flagging. For any queries on this report please contact retaildata@cer.ie. Revisions Version Published Update 1 09/08/2017 Report published /01/2018 Page 50: LDM Market Share updated 1 The primary sources of data in this report are: Electricity: MRSO (Meter Registration System Operator), ESBN (ESB Networks) and Gas: GPRO (Gas Point Registration Operator), GNI (Gas Networks Ireland). Information for a number of market monitoring indicators is also provided by suppliers. 1

3 Table of Contents PUBLIC/ CUSTOMER IMPACT STATEMENT... 1 TABLE OF CONTENTS INTRODUCTION BACKGROUND Introduction Related Documents Summary ELECTRICITY AND GAS RETAIL PRICES WHOLESALE ENERGY PRICES DOMESTIC ELECTRICITY PRICES DOMESTIC GAS PRICES DOMESTIC DUAL FUEL PRICES CHANGES IN STANDING CHARGES AND UNIT CHARGES OVER TIME NUMBER OF CUSTOMERS ON STANDARD VS DISCOUNTED PLANS ELECTRICITY NUMBER OF CUSTOMERS ON STANDARD VS DISCOUNTED PLANS - GAS NUMBER OF CUSTOMERS DEFAULTING TO STANDARD TARIFFS FEATURES OF PLANS SUMMARY ELECTRICITY AND GAS RETAIL PRICES MARKET SHARE DOMESTIC ELECTRICITY DOMESTIC ELECTRICITY MARKET SHARE BY CUSTOMER NUMBERS AND MWHS SUMMARY MARKET SHARE DOMESTIC ELECTRICITY MARKET SHARE DOMESTIC GAS DOMESTIC GAS MARKET SHARE BY CUSTOMER NUMBERS AND GWHS SUMMARY MARKET SHARE DOMESTIC GAS CUSTOMER SWITCHING AND RENEGOTIATIONS ELECTRICITY, GAS AND DUAL FUEL SWITCHING IN Q RENEGOTIATIONS

4 5.3 SUMMARY CUSTOMER SWITCHING AND RENEGOTIATIONS FINANCIAL HARDSHIP PAYG SUMMARY FINANCIAL HARDSHIP PAYG DEBT FLAGGING DISCONNECTIONS DISCONNECTIONS TOTAL DISCONNECTIONS-ELECTRICITY MARKET DISCONNECTIONS- GAS MARKET SUMMARY DISCONNECTIONS ARREARS AND PAYMENT PLANS SUMMARY ARREARS AND PAYMENT PLANS NON-DOMESTIC ELECTRICITY MARKET SHARE SMALL AND MEDIUM BUSINESS ELECTRICITY MARKET SHARE BY CUSTOMER NUMBERS AND MWHS MEDIUM BUSINESS ELECTRICITY MARKET SHARE BY CUSTOMER NUMBERS AND MWHS LARGE ENERGY USERS ELECTRICITY MARKET SHARE BY CUSTOMER NUMBERS AND MWHS NON-DOMESTIC GAS MARKET SHARE INDUSTRIAL AND COMMERCIAL GAS MARKET SHARE BY CUSTOMER NUMBERS AND GWHS MEDIUM SIZED NON-DOMESTIC MARKET SHARE BY CUSTOMER DM AND LDM MARKET SHARE BY CUSTOMER NUMBERS AND GWHS NON-DOMESTIC DISCONNECTIONS NEXT STEPS

5 1. Introduction 1.1 Background Introduction The Commission for Energy Regulation (CER) is Ireland s independent energy and water regulator. The CER was established in 1999 and now has a wide range of economic, customer protection and safety responsibilities in energy. The CER is also the regulator of Ireland s public water and wastewater system. The CER s primary economic responsibilities in energy cover electricity generation, electricity and gas networks, and electricity and gas supply activities. The overall aim of the CER s economic role is to protect the interests of energy customers. The CER has an important related function in customer protection by resolving complaints that customers have with energy companies. The CER s core focus in safety is to protect lives and property across a range of areas in the energy sector. In 2014 the CER was appointed as Ireland's economic regulator of the Irish public water and wastewater sector. The CER has an important statutory role to protect energy consumers and to monitor the electricity and gas retail markets to ensure that customers are benefitting from competition. A key strategic goal of the CER is to protect consumers so they can benefit from competition through fully competitive wholesale and retail markets. Market monitoring forms an important part of the CER s activities, in terms of providing oversight of the market, informing new policy and assessing existing regulations. Electricity and gas retail market reports are published by the CER on a quarterly basis and provide information on trends in prices, switching, market share and customer protection. The aim of these reports is to provide an overview of competition in the electricity and gas retail markets and provide consumers, industry and relevant stakeholders with information over time Related Documents Information on the CER s role and relevant legislation can be found on the CER s website at 4

6 1.1.3 Summary Electricity and Gas Prices The All Island wholesale electricity price from 2012 to April 2017 is presented in this report. In the first part of 2017, the All Island wholesale price of electricity was higher than the average price for The wholesale gas price at the UK trading hub, which sets the wholesale gas price in Ireland, also increased in 2017 and was higher than the average price for In March 2017, the least expensive annual average bill in electricity (based on typical consumption of 4,200kWhs) for a standard plan was with Bord Gáis Energy at The least expensive discounted plan was with Energia with an annual average bill of The least expensive annual average bill in gas (based on typical annual consumption of 11,000kWhs) was with Electric Ireland at The least expensive discounted plan was with Flogas with an annual average bill of In Q1 2017, Electric Ireland, Energia, Bord Gáis Energy and SSE Airtricity offered dual fuel plans to customers with price discounts for domestic customers that avail of both services from the same supplier. The least expensive dual fuel offer was with Energia, with an annual average bill of 1, Market Share Domestic Electricity In Q1 2017, Electric Ireland had the largest domestic electricity market share, with 51.16% of the market in terms of consumption. This was followed by Bord Gáis Energy with 17.36%, SSE Airtricity with 16.49%, Energia with 6.49% and PrePayPower with 5.53%. Between Q and Q1 2017, Electric Ireland s market share decreased by 3.10% in terms of consumption. Energia increased its market share by 1.77%. Pinergy increased its market share by 0.16% and held 1.39% of the market in Q1 2017, while Panda Power held 1.28%. 5

7 Market Share Domestic Gas In Q1 2017, Bord Gáis Energy had the largest market share in terms of customer numbers, with 50.13% of the domestic gas market, followed by Electric Ireland with 22.15%, SSE Airtricity with 14.48%, Energia with 5.87% and Flogas with 5.86%. Between Q and Q Bord Gáis Energy lost 1.49% of market share in terms of customer numbers. Flogas gained 0.46% of market share. Switching and Renegotiations The total number of customers switching in electricity was 77,681 in Q This represented a decrease in switching from Q of 2.1% where there were 79,380 switches. The total number of customers switching in gas was 30,527 in Q This represented an increase in switching of 20.64% from Q1 2016, during which time there were 25,305 customer switches. Between January and March 2017, dual fuel switches represented 19.6% of total switches on average. The total number of internal switches in electricity in Q was 69,533, compared to 50,177 in Q1 2016, an increase of 39% The total number of internal switches in gas in Q was 12,373, compared to 13,073 in Q1 2016, a decrease of 5.3% 6

8 Financial Hardship PAYG and Debt Flagging The total number of electricity PAYG financial hardship installs in Q was 847, compared to 1,921 in Q1 2016, a decrease of 56% The total number of gas PAYG installs in Q was 1, % of these were for financial hardship reasons. In Q ,003 were installed, with 70.09% for financial hardship reasons. In Q there were 578 debt flags raised in electricity and 317 raised in gas. Domestic Electricity and Gas Disconnections The total number of disconnections in Q was 1,145 for electricity and 553 for gas. Between Q and Q1 2017, the total number of electricity disconnections have declined by 62% and the total number of gas disconnections have declined by 35%. Arrears and Payment Plans Between 9% and 14% of customers across all segments were in arrears in Q However, it is important to note that this includes all customers that were in arrears for one billing period (of 2 months) or more in the reporting period Of the percentage of total customers the number of customers per market segment on payment plans is much lower than for customers in arrears, which may indicate that there are relatively low levels of customers in long term arrears. 7

9 Market Share Non-Domestic Electricity and Gas In Q1 2017, Electric Ireland had 36.43% of the small and medium business electricity market in terms of consumption, followed by Energia with 26.62%, SSE Airtricity with 17.63% and Bord Gáis Energy with 12.82%. SSE Airtricity lost 2.75% of its market share in terms of consumption between Q and Q1 2017, while Bord Gáis Energy increased its market share by 1.21%. From the Q report, the non-domestic gas market share segments will change based on discussions with GNI to better align with the names and classifications of the gas market segments within the GNI Code of Operations 2. In Q1 2017, Bord Gáis Energy had the largest market share in the IC gas market, with 45.17% in terms of customer numbers. This was followed by Flogas with 22.64%, Energia with 18.68%, Electric Ireland with 6.72%, SSE Airtricity with 4.88% and Vayu with 1.9%. Between Q and Q1 2017, Bord Gáis Energy increased its market share by 1.04%, while Energia s market share decreased by 1.71% Non-Domestic Electricity and Gas Disconnections There were a total of 326 non-domestic electricity disconnections and 58 non-domestic gas disconnections in Q

10 ELECTRICITY AND GAS RETAIL PRICES ELECTRICITY AND GAS RETAIL PRICES 9

11 ELECTRICITY AND GAS RETAIL PRICES 2 Electricity and Gas Retail Prices This section outlines the range of plans offered by suppliers from January 2017 to March 2017 for domestic electricity, gas and dual fuel customers, including their standard and highest discounted plans. All information presented here is publicly available on price comparison and individual supplier websites. There are a large number of plans available to domestic and business customers. These plans offer customers different tariffs comprised of standing and unit charges (and in some instances other charges). Suppliers can also offer different rates depending on the payment or billing methods of customers (e.g. paperless, online, direct debit etc.). All suppliers are required to publish details of tariff plans that are available to domestic customers. Suppliers of commercial customers often provide bespoke plans and information on such plans is generally not published by suppliers. Some suppliers also offer standard plans to business customers. The first part of this section provides comparisons between suppliers for their standard and discounted plans in gas and electricity, and details price reductions by suppliers in Q This is followed by analysis of new data received by the CER from suppliers. Data on the top ten electricity, gas and dual fuel plans per supplier in terms of customer numbers is provided to the CER on a quarterly basis. This includes information on the price components of each plan, discounts, consumption and customer numbers and has been used for analysis of the number of customers on different levels of discounts and standard plans. It should be noted that this does not represent all customers in the market as suppliers may have more than ten plans which are not reported under the new market monitoring framework. Price comparison websites are useful tools for customers to compare prices across suppliers. CER has an accreditation framework which reviews the energy price comparison service provided by websites and only accredits if the site meets defined standards for accuracy, transparency and reliability. There are two CER accredited price comparison websites: and 10

12 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 SMP Euro/MWh ELECTRICITY AND GAS RETAIL PRICES 2.1 Wholesale Energy Prices The wholesale electricity market in Ireland is jointly regulated by the CER and the Northern Ireland Authority for Utility Regulation (NIAUR). This market is known as the Single Electricity Market or SEM. The SEM Includes a centralised liquid spot market where electricity is bought and sold. Suppliers purchase their requirements in half hour periods and pay the System Marginal Price (SMP). The figure below shows the price of electricity in this centralised gross pool market in the SEM between 2012 and 2017, along with the average price across each year SMP /MWh SMP Figure 2.1 The National Balancing Point (the trading hub for gas in Britain) price in pence per therm of gas has seen a decline since 2014, but increased towards the end of 2016 and in the first part of The figure below shows the change in day ahead gas prices over time at the NBP (National Balancing Point), the virtual trading hub which sets the Irish gas wholesale price. It also shows the average price between 2012 and

13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Gas Euro/therm ELECTRICITY AND GAS RETAIL PRICES NBP Day Ahead Gas ( /therm) NBP Day Ahead Gas ( /therm) Figure Domestic Electricity Prices In order for a domestic electricity customer to accurately compare prices between suppliers, the comparison of the estimated average annual bill, using current typical consumption values of 4,200kWhs across suppliers is the best measure. In 2017 there were five suppliers offering both standard and discounted plans for domestic electricity, along with PrePayPower and Pinergy who offered PAYG plans exclusively. Standard Domestic Electricity Annual Average Bills (based on typical annual consumption of 4,200 kwhs) January 2016 March 2017 Electric Ireland Energia 1, , Bord Gáis Energy SSE Airtricity 1, Panda power - 1, PAYG Plans PrePayPower 1, , Pinergy 1, , Electric Ireland - 1,

14 ELECTRICITY AND GAS RETAIL PRICES Table 2.1 The annual average bill for Lifestyle choice PAYG customers includes an additional supplier service charge which is reflected in the price. Most Competitive Discounted Domestic Electricity Annual Average Bills (based on typical annual consumption of 4,200 kwhs) January 2016 March 2017 Electric Ireland Energia Bord Gáis Energy SSE Airtricity Panda power PAYG Plans PrePayPower Pinergy - - Electric Ireland - - Table Domestic Gas Prices In order for a domestic gas customer to accurately compare prices between suppliers, the comparison of the average annual bill, using current typical consumption values of 11,000kWhs across suppliers is the best measure. Standard Domestic Gas Annual Average Bills (based on typical annual consumption of 11,000 kwhs) January 2016 March 2017 Electric Ireland Energia Bord Gáis Energy Flogas SSE Airtricity Table 2.3 Most Competitive Discounted Domestic Gas Annual Average Bills (based on typical annual consumption of 11,000 kwhs) Gas January 2016 March 2017 Electric Ireland Energia Bord Gáis Energy Flogas SSE Airtricity

15 ELECTRICITY AND GAS RETAIL PRICES Table Domestic Dual Fuel Prices In Q Electric Ireland, Energia, Bord Gáis Energy and SSE Airtricity offered dual fuel plans to customers with price discounts for domestic customers that avail of both services from the same supplier. Highest Discounted Dual Fuel Annual Average Bills January 2016 March 2017 Electric Ireland 1, , Energia 1, , Bord Gáis Energy 1, , SSE Airtricity 1, , Table Changes in standing charges and unit charges over time Final electricity and gas bills are made up of a number of components; standing charges and unit rates are charged and some Suppliers may also levy other charges such as those associated with pre-payment meters. Standing charges for electricity and gas plans have not changed significantly over time. For electricity, they have fluctuated between an average of approximately 34c per day and 37c per day 3 depending on the Supplier. These charges should be seen in tandem with any other recurring fixed charge that a Supplier may charge customers. Competition and discounts are usually associated with the unit charge for supplier s plans. Figures 2.3 and 2.4 show the changes in electricity and gas standard and discount unit rates over time per supplier and does not take into account standing charges or any other charges that a Supplier may charge customers. Overall for standard and discounted plans in both markets, unit rates have declined in recent years and the trend across suppliers is similar. In 2016, there were a 3 This average excludes the standing charges associated with PAYG plans as additional service charges are also included. 14

16 ELECTRICITY AND GAS RETAIL PRICES number of announcements concerning price reductions, however there have been fewer price reductions in the gas market. Figure 2.3 Figure Number of Customers on Standard Vs Discounted Plans Electricity Under the CER s extended market monitoring framework, data on the top ten contracts for each supplier in terms of customer numbers is submitted to the CER on a quarterly basis. This includes data on the number of customers on each plan, the percentage discount, total consumption for the period, the features of each plan and the annual average bill. This analysis does not include all customers in the market but provides a good indication of the level of up-take of discounted plans in the market. 15

17 % of customers ELECTRICITY AND GAS RETAIL PRICES Number of customers reported on top 10 plans for Q Electricity 1,564,011 Gas 493,030 Total number of customers in the market 2,044, ,114 % of total customers 76.5% 75.49% Table 2.6 This section presents some analysis carried out with data for Q1 2017, looking at the proportion of customers on standard and discounted plans and the breakdown of the range of discounts they receive. Top 10 domestic electricity plans, Q Total Customers Standard Plans Discount plans Figure 2.5 Figure 2.5 shows the percentage of customers on standard and discounted electricity plans in Q (as reported through market monitoring). This data indicates that the majority of customers in the market, covered by the top 10 plans, are on standard plans, as shown in previous market monitoring reports showing this breakdown for This information is based on data received for Q from suppliers detailing their top 10 electricity plans, based on the number of customers on each plan. This means that not every customer in the market is detailed here and the data is only representative of the market as a whole. 16

18 % Electricity Customers ELECTRICITY AND GAS RETAIL PRICES Breakdown of electricity discounts <1% 1-5% 5-10% 10-20% >20% % discount Figure 2.6 Figure 2.6 shows the proportion of electricity customers on less than 1% discounts and discounts of between 1-5%, 5-10%, 10-20% and greater than 20%. Based on market monitoring information, most customers who are on a discounted plan are on discounts of between 1% and 5%. These may be rolling discounts on standard plans, where customers receive discounts off their plans for using direct debit and/or e-billing. Customers on discounts of 5-10% and 10-20% are more likely to be on fixed term contracts with higher discounts available. Customers who switch at the end of their contract term can avail of these discounts across suppliers. Analysis suggests that most customers are not on the highest discounted plan available, and in many cases the discounted plans with the most customers have an annual average bill that is only slightly below that of the standard tariff bill. 17

19 % of customers ELECTRICITY AND GAS RETAIL PRICES 2.6 Number of Customers on Standard Vs Discounted Plans - Gas Top 10 domestic gas plans, Q Standard Vs Discounted Plans Standard Plans Discounted Plans Figure 2.7 Figure 2.7 shows the % of customers on standard and discounted gas plans in Q (as reported through market monitoring). This information is based on data received for this period from suppliers detailing their top 10 gas plans, based on the number of customers on each plan. A larger proportion of gas customers are on discounted plans than electricity, with approximately 24% of customers receiving some type of discount. Figure 2.8 shows the proportion of gas customers on less than 1% discounts and discounts of between 1-5%, 5-10%, 10-20% and greater than 20%. More gas customers receive larger discounts (greater than 20%) than do electricity customers. 18

20 % Gas Customers ELECTRICITY AND GAS RETAIL PRICES Breakdown of gas discounts % 1-5% 5-10% 10-20% >20% % discount Figure Number of Customers Defaulting to Standard Tariffs Data is also received from suppliers on a yearly basis on the overall number of customers who defaulted to standard tariffs. The indicator refers to the automatic default of a current customer at the end of a contract to a tariff that does not have a new customer discount or a contract term associated with it Number of customers defaulting to standard tariffs, Domestic Electricity Small Business Electricity Domestic Gas IC Gas 19

21 ELECTRICITY AND GAS RETAIL PRICES Figure 2.9 Figure 2.9 shows the number of customers per market segment that defaulted to standard tariffs in There were 2,041,316 customers in the domestic electricity market in % of customers defaulting to standard tariffs in 2016 Domestic Electricity Small Business Electricity Domestic Gas IC Gas % of total customers 6.95% 4.75% 7.00% 2.33% % of customers who switched in the last 12 months 51.04% 24.17% 50.58% 16.57% Table 2.7 In 2016, approximately 51% of domestic electricity customers that had switched supplier in the last 12 months defaulted to a standard tariff, when their initial discount period ended. This amounted to 6.95% of all electricity customers. 7% of all gas customers defaulted to standard tariffs, at the end of a discount period, amounting to over 50% of gas customers who switched supplier in the last 12 months. While this is a low percentage of customers overall, taken as a percentage of customers on fixed term discounted plans this indicates that a large number of customers who were active in the market did not renegotiate their contract or switch in Lower numbers of business electricity and gas customers defaulted to standard tariffs, however a significant proportion of business customers negotiate bespoke contracts with suppliers. 20

22 ELECTRICITY AND GAS RETAIL PRICES 2.8 Features of plans In the first part of 2017 there was a large variety of payment methods available and different features across different plans. Features included cash based and credit offers, green offers, loyalty schemes and device based offers. Energy based services/free items Climote heating control Nest learning thermostat GE Led Light Bulbs In Home Displays Boiler Services Green offers Hive Active Cashback offers & Points cashback Tesco points free top ups Access to loyalty schemes 120 credit on first or second bill Discounts 2%-20% Gas discounts 1%-26% Electricity discounts Duel fuel discount bundles Payment Methods PAYG Direct Debit Bank Transfer Phone Cheque An Post Unit Charges and Standing Charges Standing charges do not vary widely Most discounts are off unit charges Contract terms 12/24 month contract terms with exit fees Most customers default to standard tariffs Table

23 ELECTRICITY AND GAS RETAIL PRICES 2.9 Summary Electricity and Gas Retail Prices The All island wholesale electricity price (SMP) from 2012 to April 2017 is presented in this report. In the first part of 2017, the wholesale price of electricity has been higher than the average price for The wholesale gas price at the UK trading hub, which sets the wholesale gas price in Ireland, also increased in 2017 and was higher than the average price for In March 2017, the least expensive annual average bill in electricity (based on typical consumption of 4,200kWhs) for a standard plan was with Bord Gáis Energy at The least expensive discounted plan was with Energia with an annual average bill of The least expensive annual average bill in gas (based on typical annual consumption of 11,000kWhs) was with Electric Ireland at The least expensive discounted plan was with Flogas with an annual average bill of In Q1 2017, Electric Ireland, Energia, Bord Gáis Energy and SSE Airtricity offered dual fuel plans to customers with price discounts for domestic customers that avail of both services from the same supplier. The least expensive dual fuel offer was with Energia, with an annual average bill of 1,

24 MARKET DEVELOPMENTS 23

25 ENERGY CUSTOMER PROTECTION 3 Market Share Domestic Electricity 3.1 Domestic Electricity Market Share by Customer Numbers and MWhs Domestic Market Share 5.4% 1.28% 0.09% 1.15% 5.93% 6.49% 1.39% 0.3% 1.28% Electric Ireland 5.53% SSE Airtricity Bord Gáis Energy 16.07% 14.45% 55.63% 17.36% 16.49% 51.16% PrePayPower Energia Pinergy Others Panda (a) Customer Nos (b) MWhs Figure 3.1, Q Domestic Electricity market Share Q Domestic Market Share Sites MWhs Electric Ireland 1,137,411 1,229,675 SSE Airtricity 295, ,458 Bord Gáis Energy 328, ,180 PrePayPower 121, ,841 Energia 110, ,995 Pinergy 26,093 33,487 Panda 23,542 30,669 Others 1,900 7,239 Total 2,044,547 2,403,544 Table 3.1, Number of sites and Mwhs per supplier 24

26 ENERGY CUSTOMER PROTECTION Domestic Customers - change in market share Electric Ireland SSE Airtricity Bord Gáis Energy PrePayPower Energia Pinergy Panda Others Q Q Q Q Sites MWhs Sites MWhs -0.58% -0.19% -2.96% -3.10% -0.18% -0.38% -0.78% -1.40% 0.18% 0.09% 0.89% 0.92% 0.12% -0.04% 0.65% 0.62% 0.34% 0.36% 1.29% 1.77% 0.04% 0.05% 0.17% 0.16% 0.08% 0.07% % -0.42% -0.24% Table 3.2, % change in market share for Q Q Summary Market Share Domestic Electricity In Q1 2017, Electric Ireland had the largest domestic electricity market share, with 51.16% of the market in terms of consumption. This was followed by Bord Gáis Energy with 17.36%, SSE Airtricity with 16.49%, Energia with 6.49% and PrePayPower with 5.53%. Between Q and Q1 2017, Electric Ireland s market share decreased by 3.10% in terms of consumption. Energia increased its market share by 1.77%. Pinergy s increased its market share by 0.16% and held 1.39% of the market in Q1 2017, while Panda Power held 1.28%. 25

27 4 Market Share Domestic Gas ENERGY CUSTOMER PROTECTION 4.1 Domestic Gas Market Share by Customer Numbers and GWhs Domestic Market Share 5.86% 22.15% 5.87% 1.5% 14.48% 6.45% 21.6% 6.52% 0.68% Airtricity 15.02% BG Energy Electric Ireland Flogas Energia 50.13% 49.73% Others (a) Customer Nos (b) GWhs Figure 4.1, Q Domestic gas market Share Domestic Market Share Q Sites GWhs (Cumulative) GWhs (Q only) Bord Gáis Energy 327,407 1,457 1,457 SSE Airtricity 94, Electric Ireland 144, Flogas 38, Energia 38, Others 9, Total 653,089 2,930 2,930 Table 4.1, Number of sites and GWhs per supplier 26

28 ENERGY CUSTOMER PROTECTION Domestic Gaschange in market share Q Q Q Q Sites GWhs Sites GWhs Bord Gáis Energy -0.84% -0.47% -1.49% -0.68% SSE Airtricity 0.22% 0.20% 0.15% -0.03% Electric Ireland -0.60% -0.36% -1.07% -1.18% Flogas 0.12% 0.07% 0.46% 0.68% Energia 0.00% 0.07% 0.45% 0.52% Table 4.2, % change in market share for Q to Q Summary Market Share Domestic Gas In Q1 2017, Bord Gáis Energy had the largest market share in terms of customer numbers, with 50.13% of the domestic gas market, followed by Electric Ireland with 22.15%, SSE Airtricity with 14.48%, Energia with 5.87% and Flogas with 5.86%. Between Q and Q Bord Gáis Energy lost 1.49% of market share in terms of customer numbers. Flogas gained 0.46% of market share. 27

29 5 Customer Switching and Renegotiations 5.1 Electricity, Gas and Dual Fuel Switching in Q ENERGY CUSTOMER PROTECTION Customer switching is a key indicator of retail competition and supplier activity within the retail market. This section contains data on customer switching activity in Q Figure 5.1, Overall Switching in Electricity, Q Q The total number of customers switching in electricity was 77,681 in Q This represented a decrease in switching from Q where there were 79,380 switches. Month Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Total Number of Switches 26,771 29,244 27,079 25,595 26,211 26,902 26,773 24,173 32,301 20,061 21,626 26,926 29,129 Table 5.1 Total switches in electricity, Q Q

30 ENERGY CUSTOMER PROTECTION Figure 5.2, Overall switching in gas, Q Q The total number of customers switching in gas was 30,527 in Q This represented an increase in switching of 20.64% from Q1 2016, during which time there were 25,305 customer switches. Month Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-18 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Total Number of Switches 8,639 8,847 6,884 7,215 7,761 7,805 7,436 7,233 6,715 9,066 10,092 11,369 10,261 Table 5.2, Total Switches in Gas, Q Q The CER has also begun to collect data on the number of dual fuel switches per month. A dual fuel customer is defined as a site that has both gas and electricity accounts with the same supplier (whether on a specific dual fuel tariff or not). The 'dual fuel switching' indicator refers to the number of dual fuel customers (measured by MPRN/GPRN) that switched, either one account or both gas and electricity, per month. The data is provide by suppliers to the CER. 29

31 Number of dual fuel customer switches ENERGY CUSTOMER PROTECTION Dual Fuel Switches Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan- 17 Feb- 17 Mar- 17 Domestic Electricity 1,988 2,547 1,996 2,243 1,626 2,447 1,877 1,854 1,662 1,367 1,455 1,810 1,009 Domestic Gas 1,862 1,406 1,318 1,631 1,469 1,823 1,599 1,433 1,540 1,203 1,323 1,694 1,264 Domestic Dual Fuel 5,492 5,729 3,823 4,343 3,923 5,358 3,942 4,448 4,651 3,511 4,218 5,017 3,071 Total Domestic 9,342 9,682 7,137 8,217 7,018 9,628 7,418 7,735 7,853 6,081 6,996 8,521 5,344 Electricity Switches 26,771 29,244 27,079 25,595 26,211 26,902 26,773 24,173 32,301 20,061 21,626 26,926 29,129 Gas Switches 8,639 8,847 6,884 7,215 7,761 7,805 7,436 7,233 8,233 6,715 9,066 10,092 11,369 Total Switches 35,410 38,091 33,963 32,810 33,972 34,707 34,209 31,406 40,534 26,776 30,692 37,018 40,498 % dual fuel 26% 26% 21% 25% 21% 28% 22% 25% 19% 23% 23% 23% 13% Table 5.3, Dual Fuel Switches Domestic Electricity Domestic Gas Domestic Dual Fuel 0 Figure Renegotiations 30

32 ENERGY CUSTOMER PROTECTION This section presents new market monitoring data on renegotiations in the electricity and gas retail markets from January 2016 to March Internal switching or renegotiations refer to situations where a new contract term, tariff or terms & conditions have been negotiated between the supplier and the customer. These can be initiated either by the Supplier or the customer. Data on renegotiations complements that collected on switching and helps to provide a more complete picture of customer engagement and the options open to customers. This analysis looks at the number of successfully completed renegotiated contracts 4 (regardless of whether initiated by the customer or the supplier or of the number of times and individual customer renegotiated) Total Number of Successful Internal Electricity Switches Domestic Electricity Non Domestic Electricity Figure 5.4 The total number of internal switches in electricity in Q was 69,533, compared to 50,177 in Q New data captured under the market monitoring framework may be subject to change 5 Data from April 2016-March 2017 is pending from Vayu and data from August 2016-March 2017 is pending from Flogas. 31

33 ENERGY CUSTOMER PROTECTION Total Number of Successful Internal Gas Switches Domestic Gas Non-Domestic Gas Figure 5.5The total number of internal switches in gas in Q was 12,373, compared to 13,073 in Q Summary Customer Switching and Renegotiations The total number of customers switching in electricity was 77,681 in Q This represented a decrease in switching from Q where there were 79,380 switches. The total number of customers switching in gas was 30,527 in Q This represented an increase in switching of 20.64% from Q1 2016, during which time there were 25,305 customer switches. Between January and March 2017, dual fuel switches represented 19.6% of total switches on average. The total number of internal switches in electricity in Q was 69,533, compared to 50,177 in Q The total number of internal switches in gas in Q was 12,373, compared to 13,073 in Q

34 ENERGY CUSTOMER PROTECTION ENERGY CUSTOMER PROTECTION 33

35 ENERGY CUSTOMER PROTECTION 6 Financial Hardship PAYG This section looks at the trend in the installation of PAYG meters. Prepayment meters are split into two types; financial hardship Pay As You Go (PAYG) meters and lifestyle choice PAYG meters. PAYG financial hardship meters are offered in the domestic electricity and gas markets to customers experiencing financial difficulty paying their bills. The cost of the meter and its installation are socialised and the customer does not have to pay anything extra for the meter itself. If a customer is in arrears, they cannot be disconnected for reasons of non-payment of account unless they have first been offered a PAYG meter by their supplier. In instances where it would not be appropriate to offer a PAYG meter, such as the customer not being able to use the meter or where there is no suitable location for the meter in the premises, the supplier must offer an alternative. The Codes of Practice require fair and robust customer processes to be in place for the installation of such meters. Currently Bord Gáis Energy, Electric Ireland, Energia, Flogas and SSE Airtricity provide PAYG meters for financial hardship in the electricity and gas domestic markets. A number of suppliers also offer lifestyle choice prepayment options in the electricity sector (Electric Ireland, Pinergy and PrePayPower). Customers may find such meters useful to manage their consumption and spending on electricity. For gas, GNI provides all the PAYG meters, both for financial hardship and lifestyle choices. If a customer wishes to avail of a lifestyle choice meter in gas they obtain such from GNI through their supplier. The CER will continue to monitor the installation of PAYG financial hardship meters in its quarterly reports. 34

36 ENERGY CUSTOMER PROTECTION Electricity PAYG financial hardship installs Q Q Q Q Q Q Q Q Q Total Cumulative Installs 67,010 70,580 73,288 75,177 77,101 78,742 80,072 81,026 81,873 Total Quarterly Installs 4,152 3,287 2,478 1,889 1,921 1,641 1, Table 5.1 Total and cumulative number of electricity PAYG installs for reasons of financial hardship Gas PAYG Installs Q Q Q Q Q Q Q Q Q Total Cumulative Installs (Financial Hardship) 6 94,927 96,676 98,124 98,835 99, , , , ,271 Total Quarterly Installs (PAYG Lifestyle choice and financial hardship) % of quarterly installs for financial hardship 1,896 2,022 1, ,003 1,276 1,075 1,069 1, % 86.5% 86.09% 72.92% 70.09% 77.35% 70.98% 41.25% 32.97% Table 5.2 Total and cumulative number of gas PAYG installs The total number of PAYG installs by ESBN declined between the beginning of 2016 and the beginning of 2017, while the number of PAYG installs for GNI increased. However, only 32.97% of these were for financial hardship reasons in This table has been revised to include cumulative figures for financial hardship only. Quarterly figures reflect both lifestyle choice installs and financial hardship installs, while the % of installs for financial hardship reasons per quarter is also presented. 35

37 ENERGY CUSTOMER PROTECTION 7,000 Total Number of PAYG Installs ,000 5,975 6,120 5,000 4,000 5,075 4,064 4,152 Electricity PAYG Installs 3,000 2,000 1,000 0 Q ,096 Q ,920 Q ,341 Q ,287 2,478 1, Q Q Q Q , Q Q Q Q Q Gas PAYG Installs Figure 5.1, Total number of PAYG installs between 2014 and 2017 Table 5.3 details the electricity PAYG meter installation rate per supplier. This was calculated by dividing the number of meter installs per quarter by the number of customers of each supplier per quarter. Electricity PAYG financial hardship Install Rate Electric Ireland SSE Airtricity Bord Gáis Energy Energia Q % 0.39% 0.32% - Q % 0.32% 0.31% - Q % 0.18% 0.18% 0.01% Q % 0.20% 0.16% 0.02% Q % 0.19% 0.24% 0.03% Q % 0.13% 0.17% 0.02% Q % 0.11% 0.12% 0.01% Q % 0.09% 0.10% 0.03% Q % 0.10% 0.09% 0.03% Q % 0.11% 0.09% 0.02% Q % 0.07% 0.05% 0.02% Q % 0.06% 0.03% 0.02% Table 5.3 Electricity PAYG installation rate 36

38 ENERGY CUSTOMER PROTECTION Table 5.4 details the Gas PAYG financial hardship meter installation rate per supplier. Gas PAYG (financial hardship) Install Rate Electric Ireland SSE Airtricity Bord Gáis Energy Flogas Q % 0.65% 0.35% 0.67% Q % 0.56% 0.32% 0.58% Q % 0.66% 0.50% 0.41% Q % 0.45% 0.42% 0.39% Q % 0.26% 0.26% 0.23% Q % 0.16% 0.12% 0.05% Q % 0.29% 0.32% 0.17% Q % 0.24% 0.21% 0.15% Q % 0.13% 0.10% 0.09% Q % 0.16% 0.09% 0.04% Q % 0.27% 0.12% 0.03% Q % 0.11% 0.09% 0.02% Q % 0.07% 0.06% 0.07% Q % 0.08% 0.08% 0.01% Table 5.4 Gas PAYG installation rate 6.1 Summary Financial Hardship PAYG The total number of electricity PAYG financial hardship installs in Q was 847, compared to 1,921 in Q The total number of gas PAYG installs in Q was 1, % of these were for financial hardship reasons. In Q ,003 were installed, with 70.09% for financial hardship reasons. 37

39 ENERGY CUSTOMER PROTECTION 7 Debt Flagging Where a customer requests to change to a new supplier, the customer s existing supplier has the facility to inform the new supplier if the customer has an outstanding debt, above the industry thresholds approved by the CER 7. The new supplier can then choose whether to proceed with or cancel the change of supplier (CoS) request where this flag has been raised. The debt flagging process has been in place since October 2011 and the CER monitors the use of the debt flagging facility by both losing and gaining suppliers on an on-going basis. Electricity Debt Flags Q Q Q Q Q Q Q Q Q Total Debt Flags 1, Total debt Flags as % of overall Switches % of debt Flagged CoS requests Cancelled Debt Flagged CoS not cancelled 1.61% 1.29% 1.11% 1.27% 35.30% 36.30% 33.10% 21.80% % 0.70% 0.80% 0.85% 0.74% 28.57% 27.97% 33.12% 36% 41% Table 7.1, Debt Flagging in Electricity Q Q Domestic threshold: 225 for > 60 days from due. Small business & unmetered supply: 600 for > 30 days from due. Medium sized business: 1,200 for > 30 days from due. 38

40 ENERGY CUSTOMER PROTECTION Gas Debt Flags Q Q Q Q Q Q Q Q Q Total Debt Flags Total debt Flags as % of overall Switches % of debt Flagged CoS requests Cancelled Debt Flagged CoS not cancelled 0.65% 0.98% 1.25% 46.29% 52.33% 44.03% % 0.71% 1% 1.67% 1% 1% 37.13% 47% 55% 50.52% 41% 40% Table 7.2, Debt Flagging in Gas Q Q

41 ENERGY CUSTOMER PROTECTION 8 Disconnections The disconnection/ de-energisation of a customer s energy supply should always be the last resort and all suppliers are required to offer a payment plan and prepayment solution to customers in advance of proceeding to disconnect. This section analyses trends in disconnections in both electricity and gas for Q In early 2014 the CER, in conjunction with industry and the Department of Communications, Energy and Natural Resources8, reviewed the market processes to ascertain if more could be done in further reducing disconnections (e.g. by increasing uptake of PAYG). While this work was ongoing the CER imposed a moratorium on the disconnections, which was lifted on 20th February In May 2014, a voluntary agreement was introduced by most energy suppliers which saw them committing to never disconnect an engaging customer. 8.1 Disconnections Total The total number of disconnections in Q was 1,145 for electricity and 553 for gas. Table 8.1 shows the total number of disconnections between 2011 and Q Total NPA Disconnections Q Electricity 17,794 17,441 12,391 8,731 7,783 6,789 1,145 Gas 4,560 7,558 6,279 3,998 3,542 2, Table 8.1, total (domestic and business) disconnections in Electricity and Gas 2011-Q Since renamed to the Department of Communications, Climate Action and Environment 40

42 Number of disconnections ENERGY CUSTOMER PROTECTION Total (Domestic and Business) NPA disconnections 20,000 18,000 16,000 17,794 17,441 14,000 12,000 12,391 10,000 8,000 6,000 7,558 6,279 8,731 7,783 6,789 4,000 2,000 4,560 3,998 3,542 2, Figure 8.1, trend in NPA disconnections from Disconnections-Electricity Market The CER receives data on electricity disconnections 9 that were completed for nonpayment of account reasons on a monthly basis from ESBN 10. This section analyses the data on validated electricity non-payment of account (NPA) disconnections This data has been validated by suppliers in advance of publication. 10 NPA can cover customers in arrears that have been disconnected because they cannot pay due to financial hardship or disconnected customers who choose not to pay debt. Currently such customers cannot be distinguished in the data. This NPA data does not include data on self-disconnections. This data includes disconnections of PAYG customers due to fraud/theft. 11 PrePayPower states that, as a prepay supplier, it only disconnects in situations where they suspect a site of being vacant or in instances of fraud based on an analysis of vend and consumption data. 41

43 ENERGY CUSTOMER PROTECTION Electric Ireland Total Domestic disconnections per supplier SSE Airtricit y Bord Gais Pre Pay Power Energia Pinergy Panda Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Table 8.2, Total domestic disconnections by supplier, January 2016 March 2017 The majority of disconnections due to NPA in Q were for domestic customers. The market share of suppliers and rate of disconnections will be considered in the 2017 annual report, which will look at the disconnection rate per 10,000 customers. Figure 8.2 shows the trend in disconnections for 2015, 2016 and 2017 compared to the trend in installation of PAYG financial hardship meters. Without a PAYG system in place which provides an option for customers facing difficulty in paying their electricity bills, disconnections would be significantly higher. 42

44 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 ENERGY CUSTOMER PROTECTION 1,800 1,600 1,400 1,200 1, Total domestic electricity disconnections compared to PAYG installs 1, , ,358 1,187 1,082 1, PAYG financial hardship installs Domestic Disconnections Figure 8.2, Total Domestic Electricity Disconnections compared to PAYG financial hardship installs for January 2015 to March 2017 Percentage change in electricity disconnections between 2014 and 2017 Total Domestic Non-Domestic % change between 2015 and % -19% 22% % change between Q and Q % -67% -36% Table

45 ENERGY CUSTOMER PROTECTION 8.3 Disconnections- Gas Market There are three types of disconnections 12 in gas: credit locks, disconnect meters (DMs) and street isolations (CTSRs). This section only focuses on the disconnections that were undertaken for non-payment of account (NPA) reasons 13. Bord Gáis Energy Total domestic gas disconnections per supplier SSE Airtricity Flogas Electric Ireland Energia Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Table 8.4, Total domestic disconnections by supplier, January 2015 March 2017 The market share of suppliers and rate of disconnections will be considered in the annual report, which will look at the disconnection rate per 10,000 customers. Figure 8.3 shows the trend in gas disconnections compared to the trend in installation of PAYG financial hardship meters. The chart indicates that without a PAYG system, disconnections would be higher. 12 The CER receives separate data reports on all three from GNI. To determine the disconnections that were completed for non-payment of account reasons (NPA), the CER assumes all credit locks were completed for NPA reasons and sends each supplier the GPRNs that relate to their DMs and CTSRs so that the supplier can identify the remaining NPA disconnections. The CER then add together all the CLs and the NPA identified DMs and CTSRs to derive an estimate for total gas NPA disconnections. 13 This data has been validated by suppliers in advance of publication. 44

46 ENERGY CUSTOMER PROTECTION Total gas disconnections compared to PAYG installs Gas PAYG (financial hardship) installs Domestic Gas Disconnections Figure 8.3, Total Domestic Gas Disconnections compared to PAYG financial hardship installs for January 2015 to March 2017 Percentage change in gas disconnections between 2014 and 2016 Total Domestic Non-Domestic % change between 2015 and % -26% 88% % change between Q and Q % -28% -55% Table Summary Disconnections The total number of disconnections in Q was 1,145 for electricity and 553 for gas. Between Q and Q1 2017, the total number of electricity disconnections have declined by 62% and the total number of gas disconnections have declined by 35%. 45

47 9 Arrears and Payment Plans ENERGY CUSTOMER PROTECTION The CER has begun to collect data on the number of customers in arrears and on payment plans per quarter, including their value and length. Figures detailing the number of customers in arrears and on payment plans per market segment will be published on a quarterly basis. Arrears refers to the number of customers by market segment that were in arrears at the end of the reporting period regardless of the value of the arrears. As shown in table 6.3, between 9% and 14% of customers across all segments were in arrears in Q However, it is important to note that this includes all customers that were in arrears for one billing period or more in the reporting period. Total number of customers in arrears and on payment plans in Q Domestic Electricity Non-Domestic Electricity Domestic Gas Non-Domestic Gas Total Arrears 270,431 22,399 74,169 2, ,305 Payment Plans 22, , ,211 Table 9.1 A better measure of customers who are continuously having difficulty paying their bills is the number of customers who have entered into a payment plan arrangement with their supplier, which is a specific payment arrangement with a supplier to cover outstanding arrears on their bills. A payment plan can include those arranged to recoup a debt, regardless of the debt source (i.e. financial hardship, fraud, credit, estimated reads, etc.). As shown in figure 9.1, as a percentage of total customers the number of customers per market segment on payment plans is much lower than for customers in arrears, which may indicate that there are relatively low levels of customers in long term arrears. 46

48 ENERGY CUSTOMER PROTECTION % customers in arrears or on payment plans 14% 12% 10% 8% 6% 4% 2% 0% Domestic Electricity Non-Domestic Electricity Domestic Gas Non-Domestic Gas Arrears Payment Plans Figure Summary Arrears and Payment Plans Between 9% and 14% of customers across all segments were in arrears in Q However, it is important to note that this includes all customers that were in arrears for one billing period or more in the reporting period. The percentage of total customers the number of customers per market segment on payment plans is much lower than for customers in arrears, which may indicate that there are relatively low levels of customers in long term arrears. 47

49 BUSINESS MARKET DEVELOPMENTS BUSINESS MARKET DEVELOPMENTS 48

50 BUSINESS MARKET DEVELOPMENTS 10 Non-Domestic Electricity Market Share 10.1 Small and Medium Business Electricity Market Share by Customer Numbers and MWhs SME Market Share 6.02% 6.5% Electric Ireland 19.62% 43.18% 26.62% 36.43% Airtricity 13.15% Bord Gáis Energy 18.03% 12.82% Energia 17.63% Others (a) Customer Nos (b) MWhs Figure 9.1, Q SME Electricity market Share Q Small Business Market Share Sites MWhs Electric Ireland 79, ,455 SSE Airtricity 33, ,299 Bord Gáis Energy 24, ,044 Energia 36, ,187 Others 11,120 66,477 Total 184,831 1,022,463 Table 9.1, Number of sites and MWhs per supplier 49

51 BUSINESS MARKET DEVELOPMENTS Small Business - change in Q Q Q Q market share Sites MWhs Sites MWhs Electric Ireland -0.69% 0.52% -3.39% -1.89% SSE Airtricity -0.30% -1.07% -2.36% -2.75% Bord Gáis Energy 0.26% 0.21% 1.61% 1.21% Energia -0.11% -1.10% -0.78% -1.38% Others 0.84% 1.43% 4.91% 4.81% Table 9.2, % change in market share for Q to Q In Q1 2017, Electric Ireland had 36.43% of the small and medium business electricity market in terms of consumption, followed by Energia with 26.62%, SSE Airtricity with 17.63% and Bord Gáis Energy with 12.82%. SSE Airtricity lost 2.75% of its market share in terms of consumption between Q and Q1 2017, while Bord Gáis Energy increased its market share by 1.21% Medium Business Electricity Market Share by Customer Numbers and MWhs The medium business electricity segment is comprised of DG3 and DG4 (public lighting and unmetered connections), DG4 and DG6 (Low voltage maximum demand. Prior to the beginning of 2017, customer numbers for this segment for DG3 and DG4 were based on the number of grouped MPRNs and single point unmetered connections. Grouped MPRNS can include any number of physical connections or technical MPRNs. From 2017 the reports for DG3 and DG4 will include the number of physical connections to the distribution system rather than at a grouped level, so the total number of customer numbers will appear larger and reported market share of customer numbers in this segment has changed. However, reporting of market share on a consumption basis has not changed. 50

52 BUSINESS MARKET DEVELOPMENTS Medium Business Market Share 0.27% 6.66% 19,72 % 1.97% 2.61% 7.73% Ireland Electric 30.06% 41.08% Airtricity Bord Gáis Energy Energia % 1.17% 8.06% 10.46% Vayu Others (a) Customer Nos (b) MWhs Figure 9.2, Q Medium Business Electricity market Share Q Medium Business 14 Market Share Sites MWhs Electric Ireland 17, ,823 SSE Airtricity 1, ,714 Bord Gáis Energy 1, ,75 Energia 63, ,294 Vayu ,354 Others 5,980 81,091 Total 89,839 1,048,851 Table 9.3, Number of sites and MWhs per supplier 14 Medium-sized business includes low voltage maximum demand (DG6) and public lighting (DG 3&DG4). 51

53 BUSINESS MARKET DEVELOPMENTS Medium Business - change in market share Electric Ireland SSE Airtricity Bord Gáis Energy Energia Vayu Others Q Q MWhs Q Q MWhs 1.61% 2.00% -1.77% -6.00% 0.24% 0.26% -1.94% -2.02% -0.06% 0.20% 1.93% 5.57% Table 9.4, % change in market share for Q to Q In Q1 2017, Electric Ireland held 41.08% of the medium business market in terms of consumption, followed by Energia with 30.06%, SSE Airtricity with 10.46%. Bod Gáis Energy with 8.06% and Vayu with 2.61%. Between Q and Q Electric Ireland increased its market share by 2%, while SSE Airtricity s market share decreased by 6% Large Energy Users Electricity Market Share by Customer Numbers and MWhs LEU Market Share 7.59% 7.43% 3.42% 10.09% Electric Ireland Airtricity 19.18% 40.91% 13.44% 7.77% 40.73% Bord Gáis Energy Energia 8.92% 15.96% 24.55% Vayu Others (a) Customer Nos (b) MWhs Figure 9.3, Q LEU Electricity market Share 52

54 BUSINESS MARKET DEVELOPMENTS Q Sites LEU Market Share MWhs Electric Ireland ,779 SSE Airtricity ,742 Bord Gáis Energy ,926 Energia ,430 Vayu ,266 Others ,880 Total 1,804 2,317,024 Table 9.5, Number of sites and Mwhs per supplier LEUs - Change change in market share Q Q Q Q Sites MWhs Sites MWhs Electric Ireland -0.79% -1.60% -4.70% -5.08% SSE Airtricity 0.88% 3.18% -1.39% 2.21% Bord Gáis Energy -0.43% -0.96% -1.12% -0.37% Energia 0.25% 0.51% 1.49% 0.68% Vayu 0.47% 0.18% 1.54% 0.19% Others -0.37% -1.32% 4.17% 2.37% Table 9.6, % change in market share for Q to Q In Q1 2017, Electric Ireland held 40.73% of the market in terms of consumption, followed by SSE Airtricity with 24.55%, Energia with 15.44%, Bord Gáis Energy with 7.77% and Vayu with 3.42%. Between Q and Q1 2017, Electric Ireland s market share decreased by 5.08% in terms of consumption, while SSE Airtricity s market share increased by 2.21% 53

55 BUSINESS MARKET DEVELOPMENTS 11 Non-Domestic Gas Market Share From the Q report, the non-domestic gas market share segments will change based on discussions with GNI to better align the names and classifications of the gas market segments with the GNI Code of Operations. The only market segment that will change will be the current RTF market segment, which will be split into the Daily Metered (DM) and Large Daily Metered (LDM) market segments. FVT-eligible gas will be renamed medium-sized non-domestic gas for the purpose of reporting. These changes are set out below: Current Name of Market Segment Total Non-domestic gas Industrial/Commercial gas (NDM IC customers with a SPC below 3,750kWh) Revised Names and definitions Total non-domestic gas Industrial/Commercial gas (NDM IC customers with a SPC below 3,750kWh) Fuel-Variation Tariff eligible gas (NDM FVT customers with a SPC above 3,750 kwh) Regulated Tariff Formula eligible gas (Annual consumption of between 5.5GWhs and 264GWhs) Medium-sized non-domestic gas (NDM FVT customers with a SPC above 3,750 kwh) Daily Metered (DM) Customers Large Daily Metered (LDM) Customers excluding power generators. 54

56 BUSINESS MARKET DEVELOPMENTS 11.1 Industrial and Commercial Gas Market Share by Customer Numbers and GWhs NDM IC Market Share 1.9% 4.88% 4.28% 3.87% Airtricity 18.68% 22.64% 45.17% 24.31% 23.2% 38.81% Bord Gáis Energy Electric Ireland Flogas Energia 6.72% 5.52% Vayu (a) Customer Nos (b) GWhs Figure 10.1, Q IC gas market share Q Sites NDM IC 15 Market Share GWhs (cumulative) GWhs (Q1 2017) Bord Gáis Energy 10, SSE Airtricity 1, Electric Ireland 1, Flogas 5, Energia 4, Vayu Total 24, Table 10.1, Number of sites and GWhs per supplier 15 Non-daily metered industrial and commercial. 55

57 BUSINESS MARKET DEVELOPMENTS NDM IC- change in market share Bord Gáis Energy SSE Airtricity Electric Ireland Flogas Energia Vayu Q Q Q Q Sites GWhs Sites GWhs 1.66% 0.91% 1.04% 0.14% 0.12% -0.07% -0.24% -0.28% 0.13% 0.05% -0.08% -0.14% -0.27% -0.60% 0.93% 0.69% -1.63% -0.36% -1.71% -0.83% 0.00% 0.07% 0.07% 0.41% Table 10.1, % change in market share for Q to Q In Q1 2017, Bord Gáis Energy had the largest market share in the IC gas market, with 45.17% in terms of customer numbers. This was followed by Flogas with 22.64%, Energia with 18.68%, Electric Ireland with 6.72%, SSE Airtricity with 4.88% and Vayu with 1.9%. Between Q and Q1 2017, Bord Gáis Energy increased its market share by 1.04%, while Energia s market share decreased by 1.71% 56

58 BUSINESS MARKET DEVELOPMENTS 11.2 Medium Sized Non-Domestic Market Share by Customer Numbers and GWhs Medium Sized Non-Domestic Market Share 2.94% 3.39% Airtricity 23.5% 14.55% 36.81% 21.31% 14.65% 36.68% Bord Gáis Energy Electric Ireland Flogas Energia 20.33% 1.87% 22.03% 1.94% Vayu (a) Customer Nos (b) GWhs Figure 10.2 Q Medium Sized Non-Domestic Market Share Medium Sized Non-Domestic Market Share Q Sites GWhs (Cumulative) GWhs (Q1 2017) Bord Gáis Energy SSE Airtricity Flogas Energia Vayu Electric Ireland Total 1, Table 10.3, Number of sites and GWhs per supplier 57

59 BUSINESS MARKET DEVELOPMENTS Medium Sized Non-Domestic Market Share - change in market share Q Q Q Q Sites GWhs Sites GWhs Bord Gáis Energy -0.56% 0.22% -1.24% -0.07% SSE Airtricity -0.07% 0.02% -0.07% -0.11% Flogas 0.28% -0.36% 0.27% 0.21% Energia 0.10% -0.62% 0.43% 0.07% Vayu 0.02% 0.30% -0.14% -0.99% Electric Ireland 0.22% 0.44% 0.75% 0.89% Table 10.4, % change in market share for Q Q In Q1 2017, Bord Gáis Energy had the largest market share in the FVT market, with 36.81% in terms of customer numbers. This was followed by Energia with 23.5%, Flogas with 20.33%, Vayu with 14.55%, SSE Airtricity with 2.94% and Electric Ireland with 1.87%. Between Q and Q1 2017, Bord Gáis Energy lost 1.24% of its market share in terms of customer numbers, while Electric Ireland increased its market share by 0.75%. 58

60 BUSINESS MARKET DEVELOPMENTS 11.3 DM and LDM Market Share by Customer Numbers and GWhs DM Market Share 1.34% 19.64% 1.34% 23.66% 8.93% 11.61% 33.93% 0.6% 1.09% 19.30% 25.09% 11.82% 11.1% 31% Airtricity BG Energy Electric Ireland Energia Gazprom Vayu (a) Customer Nos (b) GWhs Figure 10.3, Q DM gas market share Q Sites DM Market Share GWhs (cumulative) GWhs (Q1 2017) Bord Gáis Energy SSE Airtricity Electric Ireland Gazprom Energia Vayu Flogas Total Table 10.4, Number of sites and GWhs per supplier 59

61 BUSINESS MARKET DEVELOPMENTS LDM Market Share 12.12% 12.12% Airtricity 9.02% BG Energy Electric Ireland 27.27% 54.55% Energia Gazprom Vayu (a) Customer Nos (b) GWhs Figure 10.4, Q LDM gas market share Q Sites LDM eligible Market Share GWhs (cumulative) GWhs (Q1 2017) Bord Gáis Energy SSE Airtricity Electric Ireland Gazprom Energia Vayu Flogas Total 38 1,386 1,386 Table 10.5, Number of sites and GWhs per supplier In Q1 2017, Bord Gáis Energy held 33.93% of DM market share in terms of customer numbers, followed by Energia with 23.66%, Vayu with 19.64% and Electric Ireland with 11.16%. In Q1 2017, Bord Gáis Energy held 54.55% of LDM market share in terms of customer numbers, followed by Electric Ireland with 27.27%. SSE Airtricity with 12.12%, Vayu with 12.12% and Energia with 9.02%. 60