Ofwat’s annual report on the retail market finds no significant changes in year five

Ofwat has published its ‘state of the market' report for 2021-22, the fifth year of trading, which shows “no statistically significant changes in the results from last year's survey” on the key areas of customer awareness of the market, satisfaction with retailers and activity.

The report covers issues including market participation, customer activity and customer satisfaction, as well as reporting on progress with ‘market frictions’.

Among the findings were:

• incumbents’ market share fell to 93.6% from 95.6% in 2020-21;

• 48% of business customers were aware they could switch, up from 43%;

• 10% of eligible customers were active, up from 8.5%, according to evidence from customer research; and

• 77% said they were satisfied with their retailer, up from 73%.

The report drew on quantitative research with business customers, published data including from MOSL and CCW, and information from stakeholders including a round table with Major Energy Users’ Council members.