Rip-off energy giants forced to shame themselves
They may have to list failings on websites
THE WORST utility providers will be named and shamed to protect consumers under Government plans.
Companies that fail to offer loyal customers the cheapest deals will be forced to display consumer satisfaction scores on their websites.
Business Secretary Greg Clark said companies too often used consumer data to identify loyal customers and punish them by allowing them to default on to expensive deals.
He unveiled a package of proposals for consultation to improve the service customers receive. The Modernising Consumer Markets green paper pledges to end the ‘information asymmetry’ so energy, telecoms and financial services consumers can use their data to get the best deals.
Performance ‘scorecards’ will name and shame the worst companies who fail their customers and the firms will have to publish their results on their websites.
There will also be increased protection for vulnerable consumers, including those with Alzheimer’s and mental health problems. Further proposals include working with businesses to give consumers simple understandable terms and conditions and cracking down on scams.
The pledges will also include allowing consumers to opt out of subscriptions with greater ease. The paper said competition was central to the modern consumer market, new technology should work in favour of the customer and consumers should be able to get redress when things go wrong.
Andrew Tyrie, the former chairman of the Treasury Select Committee, has been nominated as chairman of the Competition and Markets Authority (CMA). The body will help to ensure markets are fairer, according to the green paper.
Mr Clark said: ‘The way we live as consumers is being transformed, powered by new products, technologies and data, and we want to ensure consumers are benefiting from this revolution.
‘The UK led the world in creating innovative approaches to regulation and competition and it is right we look to upgrade the powers and rights we give our consumers to make it easier for them to get the best deal.’
Mr Tyrie said: ‘Making markets work for the benefit of millions of people is what the CMA is all about.
‘In the years ahead, competition can and should be put even closer to the centre of British economic life, reaching to every sector, rooting out monopoly and unfair trading practices, and enhancing Britain’s global competitiveness into the bargain.’ Citizens Advice chief executive Gillian Guy said: ‘The energy price cap shows the Government is willing to intervene to make sure consumers aren’t punished for loyalty, and it is encouraging to see further action being considered in other markets.
‘Our research has shown that, left to their own devices, companies take advantage of consumers’ loyalty, and can charge them an average of nearly £1,000 per year for it.
Holidaymakers who book trips online will soon get greater protection if something goes wrong. Travel industry body Abta believes half of holidays are currently not protected if a travel company fails. But the Government says new rules will now cover more trips.
‘Upgrade consumer rights’