Our latest analysis of energy prices demonstrates the Big Six energy providers are out of touch with the market with the price gap between their standard tariffs and the cheapest deals on the market almost doubling.
In just a few weeks the Competition and Markets Authority (CMA) will publish its final decision on how to fix the energy market. You may remember that, with your support, we’ve been campaigning for the CMA’s investigation into the energy market for over the past two years to tackle the lack of competition, the sheer number of people paying over the odds for their energy and the limited protection for vulnerable customers.
Well our new analysis has looked at energy prices over the last two years since the CMA started its investigation. It reveals that the gap between the average Big Six and the cheapest on the market has risen from £182 to £329.
That’s a big gap, and it’s been increasing since 2014.
Yet, despite the significant savings available the official figures for switching rates highlight that there’s only been a small increase over the last two years.
So what’s going on? The CMA recently set out its initial thoughts on the energy market and how it intends to fix it, the report highlighted that the cost to consumers of an uncompetitive market stands at around £1.7 billion, a figure that’s rising.
The CMA proposed a range of measures including a central database of ‘disengaged’ consumers open to energy suppliers to contact each other’s customers; a ‘cap’ for customers who have pre-payment meters; a programme of testing by the regulator Ofgem and; the removal of some of the rules surrounding what tariffs energy companies can provide to their customers.
In our opinion, it isn’t clear how the CMA will judge its investigation and proposals as being successful.
Our call on the CMA
That’s why today we’ve set a challenge to the CMA ahead of its final report.
We want to see how the CMA will be evaluating the success of its remedies, as well as how it will make sure vulnerable people who’ve never switched supplier and are overpaying will get better outcomes and pay a fair price.
We also want to see energy suppliers step up and begin to work harder to restore trust in the energy market.
With almost 500,000 of you who’ve joined our call for fair energy prices, there’s a weight of expectation on the shoulders of the CMA. It’s time to deliver.
So what do you think to the energy prices you pay? Have you switched your energy provider recently? How easy did you find it?