Ofgem's retail market review: sixth report of session 2010-12

House of Commons papers 1046 2010-12

Corporate Author:
Great Britain Parliament House of Commons Energy and Climate Change Committee
Tim Yeo (chairman)
TSO (The Stationery Office)

The Energy and Climate Change Committee believes that energy companies found to have mis-sold electricity and gas deals should pay compensation to consumers. The Committee is concerned that customers may be pressured into switching supplier on the door-step without proper consideration of the options when confronted with a vast array of complex tariffs and a hard sell. Figures from Ofgem suggest that up to 40% of consumers who switch do not end up with a better deal. The report also raises concerns about the propensity for energy prices to 'rise like a rocket and fall like a feather', the growing complexity of tariffs and the market dominance of the 'Big Six' vertically integrated energy companies. The MPs single out recent price increases from ScottishPower for particular criticism. Customers who use the least energy will be hit the hardest from August when the increases are put into effect providing an apparent incentive for higher consumption - when energy companies are now supposed to be helping consumers become energy efficient. Electricity and gas tariffs are now so complex that even the Energy Minister admitted he got confused when trying to switch. The Committee is worried that a lot of people are simply bamboozled by their bills and the vast array of different tariffs on offer. The industry should address these problems immediately without waiting for Ofgem or the Government to act.

Extent [2], 15, 123p. ISBN 9780215560872
Size N/A Price £17.50
Format Paperback Published 25 Jul 2011
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