In a win for our Fix the Big Six campaign, Ofgem today referred the energy market to the Competition & Markets Authority for a full market investigation. What changes do you want to see in the energy market?
Dermot Nolan, the new chief executive of Ofgem, has referred the energy market to the Competition & Markets Authority (CMA) for a full investigation.
Ofgem expects the CMA to focus on:
- The relationship between the supply businesses and generation arms of the six largest suppliers.
- Barriers to entry and expansion for suppliers.
- The profitability of the Big Six.
- Whether or not there’s sufficient competition between the large energy suppliers.
- The trend of suppliers to consistently set higher prices for customers who haven’t switched.
- Low consumer engagement that contributes to weak competitive pressure in the market.
We’re delighted with the decision – it’s a watershed moment for a broken market that has left millions struggling to cope with spiralling bills.
CMA must leave ‘no stone unturned’
The investigation must leave no stone unturned in establishing the truth behind energy prices. While it takes place, we want to see Ofgem continue its renewed, tougher approach to protecting customers. It was encouraging to see the regulator take strong action against Npower last week, where the supplier was told to sort its billing and complaints issues or risk a ban on all telesales.
In the meantime energy companies shouldn’t sit idly by and wait for the outcome of the inquiry. They need to make urgent changes now to do better by their customers.
We want to see radical reforms, as detailed in our Fix the Big Six campaign, to inject more competition into the market and help rebuild trust by giving people confidence that the price they’re paying is fair.
What do you think of Ofgem’s decision to refer the energy market for a full investigation? What do you think the investigation should cover, and what action do you want to see energy companies take now?