The energy squeeze that followed the invasion of Ukraine by Russia tightened bills across households. Gas prices rose, electricity costs climbed, and governments introduced measures to shield families from steep increases. Observers and regulators in Canada and the United States noticed similar pressure on household budgets as people sought the best possible deals. In this climate, market dynamics revealed two opposite trends. On electricity, many customers moved away from the regulated tariff toward the free market. In contrast, gas consumers leaned toward the subsidized rate. Across both sectors, the growth in free market participation often outpaced the share covered by regulated pricing.
Lightweight: the escape of a million customers from the regulated market
The energy crisis spurred a rapid switch away from the regulated electricity tariff. Official data show tens of thousands of users shifted to alternative pricing options within a short period, and the trend continued over months. The share of customers on a regulated price for small consumers declined, while the free market rose to a historic level in many markets. In some periods, the number of regulated rate accounts dropped into the millions, while those in the free market climbed substantially.
In traditional setups, the free market started with higher prices because a basic tariff included a margin. Yet it has also provided stability amid sharp price moves during the crisis, offering protection for long stretches when regulated prices rose quickly. During the 2021 price surge, regulated customers paid noticeably more on average, while free market customers benefited from lower posted prices and added discounts that were not yet absorbed by regulatory changes and taxes.
This has driven a sustained migration from regulation to market options, a pattern that remained evident through the second half of the year. Major energy providers reported sizable shifts in their customer bases as many households chose free market plans for electricity, even as some customers still connected to regulated offers for gas.
How are electricity prices changing?
Even as the regulated electricity price index became more favorable for some consumers, many buyers continued to avoid the regulated bill. Data show a mixed picture: the median regulated electricity bill rose year after year, while the free market bill also increased but at a different pace. Analysts note that while the regulated option can deliver predictability, the free market may offer more resilience against sudden price spikes when government rules or market conditions shift.
Gas: regulated market gains half a million customers
In recent months, government support and market rules helped add hundreds of thousands of new customers to regulated gas tariffs. Industry sources indicate that major gas providers expanded their portfolios under the last resort schemes and similar protective measures. The growing use of regulated gas tariffs occurred alongside continued activity in the free market as households evaluated both options under evolving policy landscapes.
In practice, the main gas operators saw significant increases in customers signing up for regulated plans, with substantial growth noted across major retailers. The overall effect was a higher share of homes on regulated gas rates by year end, even as free market options remained widely used. The balance between regulated and free market gas remained dynamic, reflecting the impact of relief measures and ongoing price developments.
How are gasoline prices developing?
Policy changes introduced in the autumn provided targeted subsidies to households on regulated tariffs. A crisis shield funded by the government limited regulated gas tariff increases and extended support to homes with central heating in multi dwelling buildings. These measures, along with ongoing budgetary support, aimed to stabilize household energy bills while the market adjusted to new pricing realities. Analysts describe a period of deliberate government intervention paired with market responses as buyers weighed immediate relief against longer term price trajectories. Citations from regulator reports and market analyses corroborate the overall trend toward greater reliance on subsidy backed rates for certain segments while many households still found value in the competitiveness of the free market for electricity and gas.
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