Two Thirds of Brits Paying Over the Odds for Gas & Electric

A report outlining their proposed approach to the remedies the Competition and Market Authority (CMA) has recommended is out today from Ofgem, and it says that two thirds of households are disengaged and paying over the odds for their energy compared to those who have switched tariff.

Today sees some important news for customers which should see many saving as much as £300.00 a year on their energy bills.

Ofgem has also announced an interim price cap for the most vulnerable customers who are on pre pay meters which means from April 2017 they should see a saving of around £750.00 a year, this is great news and is long overdue, for years now the customers who can ill afford it have been punished by higher prices just for being on a pre pay metre.

In a bid to shake up the market and encourage those households who have never switched tariffs Ofgem will trial more effective prompts on customers’ bills to encourage them to compare tariffs. Next year Ofgem will pilot the database service, which  will allow suppliers to offer disengaged customers better value deals.

Earlier this year Ofgem launched Be An Energy Shopper which will continue through the autumn, which is encouraging consumers to save around £300 a year by shopping around for a better deal, we support this campaign and urge anyone who has set to switch to do so as soon as possible.

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Ofgem’s annual review of the retail energy market, also published today, confirmed that the majority of consumers who do not engage in the market are losing out. It also found that the proportion of people on expensive standard variable tariffs has dropped from 69% last year to 66% in March this year as switching rates increase.

Ofgem also backed proposals published last month by the Competition and Markets Authority (CMA) aimed at reforming the energy market. It said the proposals were an “opportunity to deliver a more competitive, fairer energy market for all consumers

Ofgem Chief Executive, Dermot Nolan said: “The CMA’s final report is a watershed moment for industry and consumers and points the way to a fairer and more competitive future. I call on energy companies and consumer groups to seize this opportunity.”

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