Plans to force energy suppliers to cut bills for 20 million households were abandoned yesterday despite figures showing that customers were overcharged £2.5 billion last year. The competition watchdog faced fierce criticism for capitulating to the lobbying of the so-called Big Six suppliers by dropping proposals to cap prices for households on standard tariffs. Instead of a cut in bills, energy customers face a rise in junk mail under the watchdog’s new plan to allow suppliers to access the contact details of households that have stayed on a rival’s standard tariff for more than three years. Shares in energy suppliers rose in value as the Competition and Markets Authority unveiled its final recommendations to increase competition following a two-year investigation.
Times 11th March 2016 read more »
Households could be “inundated” with unsolicited sales pitches from energy providers after the industry watchdog proposed forcing companies to open up their databases to rival suppliers.
Independent 10th March 2016 read more »
Guardian 10th March 2016 read more »
Catherine Mitchell: The CMA has announced its Energy Market Investigation Summary of Provisional Decision on Remedies. The full version will be published shortly. Overall, it is a mixed bag – quite a few good things; some bad things. However, the CMA, by virtue of its Duties, has to investigate the energy market within the dimension of competition, and to this extent its remit is bound to be too narrow to make meaningful recommendations to meet the energy challenges facing GB. The challenges facing energy systems around the world, including GB, cannot be resolved by Business As Usual governance solutions. These energy system challenges broadly fall in: the impacts and opportunities of new technologies (whether supply, demand or operation); flat or falling demand; infrastructural needs (to be paid for by the flat or falling demand); decarbonisation requirements; and affordability concerns. This requires a ‘new’ governance framework to enable solutions. BAU governance simply will not meet those challenges, as so clearly stated by Audrey Zibelman, Chair of the NY REV Public Service Commission (the NY State equivalent of Ofgem).
IGov 10th March 2016 read more »