The price cuts from the Big Six come into effect this month. But our research shows that the energy market is still failing customers, with people missing out on savings of up to £400 a year.
Our latest analysis, ahead of the Competition and Markets Authority (CMA) announcement on its final remedies for the energy market, shows that Big Six customers will save just £30 a year when the latest price cuts come into effect.
That’s small pittance compared to the £400 they could save if they switched to the cheapest deal on the market.
We want fair energy prices
Over the last couple of months we’ve seen the Big Six providers (and some of the smaller ones too) announce price cuts to their gas prices. However, with dropping wholesale costs many will question whether these 5% cuts are enough. This includes thousands of our Fair Energy Prices campaign supporters, such as Susan:
‘Energy prices have been too high for too long. Something needs to be done now to stop us paying over the odds. We are being ripped off.’
Paying over the odds
The disparity certainly seems to highlight why the energy market was referred to the CMA in the first place, with millions paying over the odds and society’s most vulnerable having to make difficult decisions about their energy usage during cold weather. Our supporter Lindsey sums this up:
‘It’s a disgrace that our most vulnerable in society have to make the choice of “eating or heating”. We are not a third world country and people shouldn’t have to live like we are.’
Although customers could save £400 a year by switching to the cheapest dual fuel deal, doing so isn’t always straightforward. And it can be out of reach for many, especially the most vulnerable. That’s why our Fair Energy Prices campaign is also calling for the process to be made easier for everyone. Paula told us:
‘Consumers need better information that is easily understood. We as consumers are at the mercy of huge companies as we do not understand global prices.’
Putting pressure on the CMA
We’re expecting the CMA to report back imminently and there’s a lot resting on its final proposals. So far over 360,000 of you have joined our calls for fair energy prices and today we’ve shared your stories with the CMA to demonstrate that the market just isn’t working.
The CMA has a real chance to fix the broken energy market, to make switching easier and penalise suppliers who don’t protect the most vulnerable. It will be judged on the legacy of its recommendations and if it doesn’t deliver a fairer energy market, it will have failed.
We’re all waiting with baited breath, but we need your help to make a final push on the CMA. Tell them, why do you want fair energy prices?
[UPDATE 10 MARCH 2016] – After two years investigating, the Competition and Markets Authority has given its final verdict on the energy market. Read the CMA’s proposals and have your say in our new conversation.
Do you think the CMA will deliver fair energy prices?
No (76%, 8,736 Votes)
Don't know (18%, 2,020 Votes)
Yes (7%, 766 Votes)
Total Voters: 11,522