£4bn penalty for loyal customers

LOYAL customers are paying at least £ .1billion a year more on household bills because of problems with watchdogs.

Official auditors warn today that they generally pay more than new customers for energy, telecoms and broadband, water, banking and insurance.

Their report questions the effectiveness of watchdogs and singled out the four main utility and finance regulators: Ofgem, Ofcom, Ofwat and the Financial Conduct Authority.

The National Audit Office said: ‘They cannot prove if they are responding to consumer concerns or offering enough protection for those who need it.

‘People find it difficult accessing the best deal, resulting in customers who do not switch typically paying more for the same service as new customers.’

NAO head Amyas Morse said regulators appear ‘detached from people’s practical concerns and pressures’.

In 2018, Citizens Advice estimated the ‘loyalty penalty’ at £ .1 billion a year.