The report states that:
The report proposes remedies for the domestic energy retail sector, comprising three strategic components:"...we estimated the detriment from excessive prices to the domestic customers of the Six Large Energy Firms to be about £1.7 billion a year on average over 2012 to 2015, the entire period for which we had data, with a marked trend upwards year on year, reaching almost £2.5 billion in 2015."
(a) creating a framework for effective competition
(b) helping customers to engage to exploit the benefits of competition
(c) protecting customers who are less able to engage to exploit the benefits of competition
The proposals include:
- A price cap on pre-payment meters
- An Ofgem database of customers who haven't switched energy supplier in the last three years, which will be made available to the energy suppliers for targeting
- Ending restrictions on suppliers that limit them to four tariffs
- Strengthening price comparison services
- tackling "rollover contracts"
https://www.gov.uk/cma-cases/energy-mar ... estigation
The BBC has reported that the proposed price controls for pre-payment customers could reduce bills by about £90 per household.
To read more, visit: http://www.bbc.co.uk/news/business-35770754
However, not all reaction to the CMA's report has been positive.
OVO Energy has released a statment saying that "Some of the CMA’s nonsensical ideas will actually do more harm than good to customers." (See https://www.ovoenergy.com/about-ovo/med ... =hootsuite). And there has been much concern that the proposed Ofgem database will lead to a surge in junk mail. (See http://www.theguardian.com/business/201 ... -customers).
