Extract A

Competition and Markets Authority (CMA) report into the UK energy market

An investigation into the UK energy market by the CMA concluded that customers have been paying £1.4 billion a year more than they would in a fully competitive market. It found that 70% of domestic customers of the six largest energy firms were on an expensive standard rate. These customers could each save over £300 a year by switching to a cheaper deal but appear reluctant to do so.

However, the CMA investigation found no evidence of anti-competitive practices by firms. There has even been an increase in new entrant energy suppliers over recent years, and their combined market share has reached 12% in both gas and electricity supply.

To protect consumers, the CMA has introduced various measures to open up and increase competition in the UK energy market. These include: • the creation of a database designed to help consumers switch energy suppliers - rival suppliers can directly contact these customers; • the conversion of all homes to smart energy meters, making it easier for customers to measure energy consumption and switch supplier • new rules to protect the four million vulnerable customers using prepaid meters - this includes a temporary price cap until smart meters have been installed.

(Source: adapted from https://www.gov.uk/government/ news/cma-publishes-final-energy-report-in-full)