If you’re a customer of one of the ‘big six’ energy firms, then you’re probably paying too much for your gas and electricity. That’s the conclusion of an 18-month investigation by the competition authorities.
In an eagerly awaited report by the Competition and Markets Authority (CMA), it has emerged that households and small businesses have overpaid to the tune of £1.7 billion a year in total. The ‘big six’ energy companies are Centrica (which owns British Gas), SSE, Iberdrola’s Scottish Power, RWE npower, E.ON and EDF Energy. Today’s findings mean that up to four million households on pre-paid meters could see their energy bills cut thanks to a proposed cap by the CMA.
It has also proposed that the regulator, Ofgem, keeps a database of customers who have been on a standard rate for three years so that the information can be shared, allowing these consumers to be targeted directly by other suppliers. Stephen Murray, energy expert at MoneySuperMarket, said: ‘Removing the four-tariff rule should provide consumers with more choice, clearer differentiation between suppliers and increased switching possibilities.’‘Today’s recommendations from the CMA are a positive step towards helping UK households save more money on their energy bills.’
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