Why you are paying too much for energyWe reveal how the energy market should work
27 April 2015
Radical action is needed to shake up the energy market and cut customers' bills, according to Which?
The Competition and Markets Authority (CMA) has been investigating the energy market and is due to report its provisional findings soon.
Now Which? has set out five tests - we will be judging the CMA's findings against these tests to make sure the energy market is fixed for consumers.
You can help, too. Sign up to our Fair Energy Prices campaign to make your voice heard. Over 200,000 people have already signed.
Five ways to fix the energy market
Which? thinks customers are paying too much for their energy and that the market is too complex.
Today we submitted an open letter to the CMA, setting out five tests to make sure the energy market should be fixed:
- make the market less complex: increase consumer engagement and introduce reforms such as simple pricing. This will make it a lot easier for consumers to compare energy deals and choose the right one
- protect consumers who are unable or choose not to engage and, as a result, languish on poor value standard variable tariffs
- ensure smaller suppliers can genuinely compete with the Big Six suppliers
- deliver greater transparency over Big Six profitability, particularly whether wholesale costs are being passed on fairly to consumers
- allow suppliers to trade electricity and gas in a way that benefits customers
The CMA's findings are due to be announced in about a month.
Energy market needs radical action
Which? executive director Richard Lloyd said: 'The CMA investigation is a golden opportunity to ensure the energy market is performing competitively, efficiently and in the interests of all consumers.
'The CMA must announce remedies which will tackle the fundamental failings of this broken market once and for all.
'After years of being poorly served by energy suppliers, consumers are expecting to see radical proposals that will dramatically improve this market and restore trust.'
Don't wait - save money now
In the meantime, while we all wait for the CMA's findings, you could cut your bills by switching your energy supplier.
Compare energy prices now with our comparison site Which? Switch. Our customers are currently saving an average of £245* a year on their gas and electricity bills. This is an average figure, so many save a lot more.
*(Average estimated saving for customers who applied to switch suppliers through Which? Switch between 1 October 2014 and 31 December 2014.)