The latest crackdown on Britain’s energy market doesn’t go far enough and will leave most households overpaying for their gas and electricity, critics have claimed.
Ofgem, the energy watchdog, has outlined a range of measures that it says will achieve a “fairer, more competitive” market.
The headline changes include capping prices on prepayment energy meters – a move it says will benefit four million households – and prompting customers on poor deals to switch.
“Combined with other changes already happening, such as smart meters and faster switching, these remedies provide an opportunity to transform the energy market,” Ofgem claimed in its latest report.
‘A tale of two markets’
However, critics say the changes will only benefit the minority of customers who actively switch deals, while most others continue overpaying for their energy.
Ed Kamm, the managing director of independent energy supplier First Utility, said: “Too many people, some 70% of UK households, are overpaying for their energy.
“But the proposals put too much onus on the customer, don’t go far enough and the timing of their implementation is baffling.
“Ofgem itself admits that consumers who are already engaged in the market will see the first benefits.
“We are in real danger of continuing to fuel a ‘tale of two markets’ – helping those who already shop around and doing little to properly help those who are continuing to pay much more than they need to or should.”
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‘Massive dissapointment’
Dale Vince, founder of independent supplier Ecotricity slated Ofgem’s plans as a “massive disappointment”.
He went on to question why the regulator would be willing to cap prepayment meter prices but not for the far larger group of customers that have never switched.
“The recommendations will improve the situation for the four million prepayment meter customers in Britain.
“We welcome that, it's been a longstanding shame on so many energy companies, charging a penalty rate to some of the poorest households in Britain.
“But we lament the fact the same logic is not applied to the vastly bigger customer group who’ve never switched.”
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