Today is a watershed moment for the energy market. The Competition and Markets Authority has confirmed what we’ve known all along – competition isn’t working for consumers.
The Competition and Markets Authority (CMA) has published its initial thoughts from its energy market investigation, called for by thousands of Which? campaign supporters.
Energy market competition and prices
The CMA has found that the customer base of the Big Six is mostly made up of standard tariff customers, with many of these being with the same supplier for more than 10 years. This has left millions of people paying over the odds for their gas and electricity.
In fact, the CMA has found that 95% of Big Six dual fuel customers on standard tariffs could have saved between £158 and £234 each year by switching. In addition, those same customers are providing the suppliers with 12% more revenue than those on fixed tariffs, suggesting that loyal customers are subsidising other consumers. Competition clearly isn’t working in the energy market.
Energy supplier customer satisfaction
The CMA has also found that complaints have increased five-fold between 2007 and 2013, with a doubling of complaints to the Ombudsman in the last year. The report also points out that the Big Six suppliers did very poorly in our customer service survey in 2014.
What are we doing?
The CMA will now continue its investigations, and expects to publish its provisional findings in May this year.
As part of our Fair Energy Prices campaign we want the Competition and Markets Authority to develop a set of solutions to repair the energy market and make it work for everyone, not just the suppliers. This must include establishing a fair price that you can trust, to restore consumer confidence in the energy system.
People will also be looking to politicians of every party to set out how they’ll deliver fair and affordable energy prices in the future.
So what do you think of the CMA’s latest findings? Do you think the Big Six deserve their customers? Have you been a loyal customer that’s been paying a standard tariff for years? Are you now tempted to switch energy suppliers?
No (89%, 232 Votes)
Yes (6%, 16 Votes)
Don't know (5%, 14 Votes)
Total Voters: 262