Watchdog investigating obstacles preventing customers switching
A probe into the UK energy sector by the Competition and Markets Authority (CMA) has found that customers who change their suppliers can save up to £234 a year.
The report, which comes as the investigation into the energy market continues, found that customers of the Big Six energy firms in the UK can save an average of £158 – £234 a year by switching suppliers.
The Big Six energy firms are: British Gas, SSE, Scottish Power, Npower, EDF and E.On.
The CMA is set to investigate what is preventing consumers from changing their energy supplier.
In the report published today, the CMA also highlights disparities in energy costs for small businesses.
The report said: “For small and medium-sized enterprises (SMEs) as a whole, average electricity prices grew by 8% and average gas prices grew by 11% [between Q1 2012 and Q2 2014].
“EBIT margins [earnings before interest and taxes]in the SME segment were on average 8.6% over the period – significantly higher than those on sales to domestic customers.”
Responding to the CMA’s updated report today, SSE chief executive Alistair Phillips-Davies, said: “While they clearly result in a degree of short-term uncertainty, the continuing energy market investigation along with the forthcoming UK general election do provide opportunities to achieve greater regulatory and policy stability in the GB energy market, for the benefit of customers and the required investment in the country’s energy system.
“It is in everyone’s interests that we have a trusted energy market that not only works for customers but is seen to do so.”