Despite rises in energy bills in the last two years, competition among British energy suppliers remains strong, according to research published by Britain's Office of the Gas and Electricity Markets (Ofgem). This means that customers who have never switched suppliers could still save around -100 each, or approximately -1 billion.

According to the Ofgem report:

• Suppliers are offering customers a wider range of plans, including capped, fixed-price and Internet-only deals.

• British Gas continues to lose market share. The utility lost 6% market share between June 2004 and June 2005, leaving it with 53% of the U.K. gas market

• In some electricity areas, suppliers have retained less than 50% of their market share.

• More than 300,000 customers are changing gas and electric suppliers each month.

Customer satisfaction is also high, with more than 80% of customers satisfied with their energy company. Ofgem's report shows that while competition in most areas of Britain is strong, competition in Scotland is less so with Scottish Hydro only losing 20% of its market share. Ofgem reported that this reflects the fact that until April 2005, Scotland did not have a competitive wholesale market for electricity and it also lacks an extensive gas network.