Annual Retail Energy Market Monitoring report published
The new Annual Retail Energy Market Monitoring (AREMM) Report for 2020 is the latest of a series of Utility Regulator (UR) reports that provide a range of information about the retail energy market in Northern Ireland. This report was previously known as the Annual Transparency Report (ATR).
The 2020 AREMM merges the relevant quarterly information for the calendar year from the Quarterly Retail Energy Market Monitoring reports (previously known as the Quarterly Transparency Reports) and is therefore the summation of Quarter 1 through to Quarter 4 for 2020.
The AREMM report presents data collected by the UR as part of the Retail Energy Market Monitoring (REMM) framework. REMM requires network companies and suppliers to submit data on a range of indicators to enhance UR transparency around market behaviours and regulatory compliance. We use the information outlined in the report to review the progress and impact of supply competition; build knowledge for regulatory decisions; comply with EU Third Package mandatory requirements on market monitoring; allow other interested stakeholders to understand more readily the activity within our energy markets; and to help promote the interests of consumers.
The key developments during 2020 are outlined below:
- The semester 2 (July to December) 2020 electricity pricing data is sourced from Eurostat and individual supplier’s submissions under the REMM framework. The pricing data illustrates the following:
- NI domestic electricity prices (17.8 p/kWh) continue to rank below the UK (18.9 p/kWh) EU median (19.3 p/kWh), and are lower than the Republic of Ireland (23.7 p/kWh).
- The NI I&C electricity price for the Very Small connections (which represent c72% of I&C connections) is 15.6 p/kWh, which is lower than the EU median (16.4 p/kWh), UK (17.1 p/kWh) and Republic of Ireland (21.4 p/kWh).
- For Large and Very Large I&C customers (c0.02% of connections) NI prices (9.0p/kWh) are just above RoI (8.3p/kWh) but below the UK (12.2 p/kWh).
- The domestic gas prices in NI are amongst the lowest in Europe at 4.1 p/kWh. This is less than, UK (4.3 p/kWh), RoI (6.3 p/kWh) and EU median (6.8 p/kWh).
- Market activity in the electricity domestic and I&C sectors during 2020 continues to illustrate a gradual change in the market dynamics. Power NI (the incumbent price controlled electricity supplier) retain their dominant position with 54.8% of connections in the domestic market with continued growth of the competing suppliers (representing 45.2% of domestic connections, an increase from 43.8% at the end of 2019).
- Domestic customers continue to engage in the market with over c83,200 domestic switches completed during 2020, an indication that 9.3% of the market is participating. I&C switching activity increased from c7,200 in 2019 to c8,400 in 2020 – an increase of 16.7%.
- In the gas sector there was c1,680 switches during 2020. This equates to c850 domestic switches (domestic switching only applies to the Greater Belfast distribution network area) and c820 I&C switches.
- During 2020, there were over 8,900 electricity complaints made by domestic and I&C customers and 2,900 gas complaints made by customers to their suppliers. The three most common supplier complaints made during 2020 related to: bills, payments and accounts, customer service and prepayment meter issues.
Copies of all documents can be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.