Ofgem energy probe - uSwitch.com comments

Welcoming Ofgem's initial findings on the competitive energy market in the UK, Ann Robinson, Consumer Policy Director at uSwitch.com, says:

"This is good news for consumers - Ofgem's proposals will breathe a new lease of life into the UK's energy market, opening it up so that more people will be able to benefit.

"Ofgem's report and proposals are absolutely spot on - they should make the market work better for consumers and give confidence to those who are not yet taking advantage, but arguably have the most to gain.

There are whole sections of society, including the elderly and the fuel poor, who are missing out on the benefits of the competitive energy market.

The steps Ofgem intends to take will hopefully now encourage their regular involvement and ongoing engagement.

"The report acknowledges that competition works, but that there are some flaws currently preventing it from reaching its full potential.

The remedies it suggests are practical, realistic and consumer friendly.

They should remove confusion and ensure a free flow of information that will inform and empower consumers so that they can make an educated choice for themselves.

Better billing, annual energy statements and the tightening up of company sales and marketing practices will all bring greater transparency and shift some of the current barriers to switching.

"The report also highlights the fact that not all consumers are equal in this market - some are getting a far better deal than others.

In particular it highlights the higher prices that prepayment meter customers are being forced to pay compared with direct debit customers and the fact that electricity only customers - many of whom live in rural communities with no access to mains gas - are being forced to pay proportionately more for their electricity.

Ofgem has made it clear that it wants suppliers to tackle these issues head on and ensure that all consumers get a fair deal.

It also wants to see greater transparency in how attractive deals are advertised and offered.

As a result we should see far more consumers moving to cheaper or more suitable energy plans, therefore cutting their bills substantially.

"The key thing to all of this is that Ofgem has recognised the flaws and is setting out a blueprint on how to set the market right again.

This is now a golden opportunity for suppliers to work with the regulator on ironing out the problems to ensure that there is healthy competition and that consumers are fully able to take advantage." For more information visit www.uSwitch.com or call 0800 093 06 07.

Back to top