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Major UK energy firms 'overcharged' Energy customers 'paying too much'
(about 9 hours later)
The big six energy suppliers "overcharged" millions of energy customers to the tune of £1.2bn a year, the Competition and Markets Authority (CMA) will say in a report expected on Tuesday. Millions of energy customers have been "paying too much for their energy bills" a year-long investigation by the Competition and Markets Authority (CMA) has found.
Firms reportedly charged households 5% more than they would have in a competitive market. Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households more than they would have in a competitive market, the CMA said.
The report refers to the period 2009 - 2013. It found dual fuel customers could save £160 a year on average by switching.
The CMA will also propose measures to protect customers. The CMA has suggested several remedies.
One measure is a transitional price cap, while reforms are made to the energy market. One measure it is considering, is a transitional price cap, while reforms are made to the energy market.
The big six are British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE. "There are millions of customers paying too much for their energy bills - but they don't have to," said Roger Witcomb, chairman of the energy market investigation.
The findings will be seized upon by consumer groups as confirmation that the energy market has not been working for consumers. Gas and electricity prices have risen by 125% and 75% respectively in the past ten years, but much of the increase in recent years has been down to environmental and network costs, according to the CMA.
The year long investigation is thought to have concluded that dual fuel customers could save on average £160 a year by switching. And it says that recent reforms by the energy regulator Ofgem to encourage switching - by reducing the number of tariffs on offer - have not had the desired effect.
The CMA will say that gas and electricity prices have risen by 125% and 75% respectively in the past ten years, but that much of the increase in recent years has been down to environmental and network costs. To help vulnerable customers, the CMA has proposed that those on pre-payment meters, who are often charged the highest tariffs, should be the first to receive smart meters when the national roll-out gets underway.
It is understood that the CMA will say that recent reforms by the energy regulator OFGEM to encourage switching - by reducing the number of tariffs on offer - have not have the desired effect. The CMA has also suggested measures to help businesses get a fairer deal for energy, including prohibiting energy contracts being automatically rolled over.
To help vulnerable customers, the CMA will propose that those on pre-payment meters, who are often charged the highest tariffs, should be the first to receive smart meters when the national roll-out gets underway. The CMA's will consult on its proposals and publish final recommendations before the end of the year.
The CMA will also propose measures to help businesses get a fairer deal for energy, including prohibiting energy contracts being automatically rolled over. The Competition and Markets Authority (CMA) has been investigating the energy market since last July.
The year long investigation involved around a dozen site visits, 30 hearings and more than 100 submissions. In February, it published its initial findings, saying that, from 2012 to 2014, more than 95% of dual-fuel customers of the big firms would have have saved money by switching tariffs or suppliers. The savings they missed ranged from £158 to £234 a year per customer.
The CMA's initial findings will be published at 7AM on Tuesday morning. It will then consult on its proposals and "remedies" and publish final recommendations before the end of the year. The year-long investigation involved around a dozen site visits, 30 hearings and more than 100 submissions.
The findings are likely to be seized upon by consumer groups as confirmation that the energy market has not been working for consumers.
Do you feel you were overcharged by your energy supplier between 2009 and 2013? Email haveyoursay@bbc.co.uk with your story.
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