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The Energy Secretary has responded today to the biggest ever investigation into the energy market. Amber Rudd said the Competition and Markets Authority’s recommendations support everything this Government is doing to deliver a fair, competitive energy market that puts the power back into the hands of people across the country.
Since 2014, the CMA – the UK’s primary competition and consumer authority – has been carrying out an independent, comprehensive investigation into the energy market to find out whether it’s working for billpayers.
They found that people could have been paying about £1.7 billion a year more than they should be and have recommended three main proposals:
An Ofgem-controlled database to allow rival suppliers to contact domestic and microbusiness customers who have been stuck on their supplier’s default tariff for three years or more to help them see if better deals are available.
A temporary safeguard price control for the 4 million households on pre-payment meters who face limited competition from suppliers and whose ability to switch and find better deals is far more limited than for credit and direct debit customers.
Removing the four tariff rule to enable suppliers and price comparison websites to offer tariffs designed for certain customer groups.
“This is a wakeup call to the Big 6.
“Energy customers should get a fair deal from a market that works for them. That’s why we called for the biggest ever investigation into the energy market and won’t hesitate to take forward its recommendations.
“This report goes hand-in-glove with everything this Government is doing to deliver a fair, competitive energy market that puts the families and businesses paying the bills first and the power back in their hands.”
More information on what the government is doing to keep energy bills down.
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