The voice of the energy industry

Energy UK response to the CMA provisional decision on remedies for the energy industry

The Competition and Markets Authority has published its provisional decision on remedies for the energy industry. 

In response, Energy UK chief executive, Lawrence Slade said:

“The energy industry recognises the need to put customers first while delivering reliable, clean and affordable energy. Industry is committed to making things simpler and fairer for all, including making it easier and quicker for customers to understand their energy usage and to switch supplier. Government has recently acknowledged even more individuals trust their energy company to offer them a fair deal. With over 30 companies now in the market competing for customers, prices have been steadily falling and there are a wide range of tariffs on offer. There are a number of deals that are over £130 cheaper than this time last year and it is positive that switching numbers are increasing However, more needs to be done and the energy industry will work with customers and other bodies to continue making this market work for everyone.”

In addition, on specific remedies, Energy UK said:

Switching:

“Almost 4 million people switched energy provider in 2015. While we need to look at the detail, Energy UK welcome measures to further improve customers’ engagement with the market.”

Customer database:

“Companies treat customers’ information with the utmost care. We agree that customers should have the information they need to make an informed choice but would like people to be able to choose if they get marketing information or not.  The implementation of this proposals will need to be carefully considered to ensure that customers’ personal data and right to privacy remains protected.”

Safeguard Tariff for PPM Customers:

“While PPMs are more complex to manage the energy industry works hard to support vulnerable customers and switching is open to everyone – even customers who owe money on their pre-payment meter can usually switch. There are a number of prepayment tariffs on offer and consumers can save up to £200 by switching to the cheapest prepayment deal. But it is important any recommendation does not have the perverse effect of preventing customers from shopping around.

Resetting relationships:

“Energy UK and its members have also been calling for a new relationship between industry, Ofgem and the government and echo the CMA findings that this is needed to make sure decisions which effect customers and the energy industry are efficient and based on facts.” [Energy UK set out its views on this in Pathways for the GB Electricity Sector to 2030 in February]

Codes’ governance:

“Energy UK supports open governance and efforts to engage the full range of industry parties in code governance. We look forward to working with the Competitions and Markets Authority as the investigation moves into its final stages.”

Removal of four tariff rule:

“Energy UK supports measures that promote competition.”

Notes to editors

  1. DECC’s customer satisfaction survey can be found on the Government website.
  2. The IPSOS Mori research can be read on the Energy UK website.
  3. Read the Cornwall Energy domestic market snapshot on the Energy UK website.
  4. For more information on Money Saving Expert’s guide to prepayment meters visit their website.

List of voluntary measures the industry has implemented:

 

Energy UK Small