Energy rip-off (cont.)

MILLIONS paying too much for their energy… long-standing customers charged rip-off tariffs … ‘confusing and inaccurate’ bills, making it hard to compare deals and switch to cheaper suppliers …

As few will disagree, the Competition and Markets Authority has correctly identified much of what’s wrong with the Big Six power firms.

Indeed, it finds dual-fuel customers could save £160 a year by switching tariffs – if only the process were less ‘daunting’ and comparisons easier to draw.

But with complaints soaring five-fold between 2008 and 2013, grave doubts must surely remain over how much difference the CMA’s recommendations will make.

Yes, it makes sense that regulator Ofgem should provide a price comparison service, so customers needn’t rely on internet firms, many of which are too close to the industry.

But the Mail has reservations over the watchdog’s suggestion of a price-cap on the most expensive tariffs, to protect ‘sticky customers’ who fail to switch. Wouldn’t such a blunt instrument encourage the Big Six (four of them foreign-owned, caring little about British consumers) to charge the maximum allowed – reducing competition further?

Worse still, the watchdog’s report offers no answer to the biggest scandal – the speed with which firms increase charges when wholesale prices rise, and their sloth in passing on savings when they fall.

With too few competitors to challenge the Big Six – and green policies driving up bills – this paper fears the outlook for consumers looks as bleak as ever.