Customers missing out on savings by not switching energy providers
Happy Friday everyone! Penny and I are becoming increasingly wary of our energy bills, especially after the latest revelation that dual-fuel customers of the big six energy suppliers have been overcharged as much as £234 a year by not switching suppliers.
Findings from the Competition and Markets Authority (CMA) show that 95 per cent of dual-fuel customers on standard variable tariffs could have saved between £158 and £234 a year if they had switched supplier between early 2012 and early 2014.
The report found that customers who had not switched provider were more likely to be on low incomes, over 65, living in social housing and without any qualifications. Findings also show that customers on standard variable tariffs were more likely to be disabled, a single parent and struggling financially.
The competition regulator reported that between 40 and 50 per cent of electricity customers have been with a supplier for more than 10 years. For one supplier, this figure is as high as 70 per cent.
The CMA has been investigating the energy market since last July, after a referral by Ofgem.
Richard Lloyd, Executive Director of consumer group Which? said: “This is a watershed moment for the energy market as the CMA confirms what we’ve known all along: that competition is not working for consumers.
“The Competition and Markets Authority now needs to develop a set of solutions to repair the market and make it work for everyone, not just the suppliers. This must include establishing a fair price that people can trust, to restore consumer confidence in the energy system. Consumers will also be looking to politicians of every party to set out how they’ll deliver fair and affordable energy prices in the future.”
Loyal customers could be missing out on savings of up to £234, so it has never been more important to shop around for your gas and electricity!
Love, Kenny x
Source – The Guardian