CONSUMER MARKETS, INCLUDING THE ENERGY MARKET
“My Government will ensure fairer markets for
consumers. This will include bringing forward measures to
help tackle unfair practices in the energy market to help
reduce energy bills.”
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The Government will publish a green paper that will
closely examine markets which are not working fairly for
consumers, and is prepared to act where necessary.
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This will look across markets at how to help consumers
avoid being caught out by unfair terms and subscription traps.
We will also consider ways to help them enforce their rights,
including through more widespread use of alternative dispute
resolution.
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It will include measures aimed at helping consumers to
get a better deal in individual essential markets like
telecoms, where we will make billing easier to understand for
customers.
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In the housing market we will look at ways we can
streamline the home buying process so it is cheaper, faster and
less stressful for people when they make the biggest purchase
of their life.
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We have committed to extending the price protection
currently in place for some vulnerable energy consumers to more
of those on the poorest value tariffs. We are considering the
best way to do this - whether through action by the regulator
or legislation.
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Progress has been made in recent years to improve
competition in the energy retail market, but it is clear that
more needs to be done. That is why we are legislating to allow
the Government to continue to support the effective and
efficient completion of the smart meter rollout, putting
customers in control of their energy use. We will also support
initiatives to improve switching and transparency in the
market.
Key facts
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Citizens Advice Bureau estimates that 2 million customers
have problems cancelling subscriptions each year, and 4 out of
5 people who had a problem with recurring payments did not
realise they had signed up until money was taken from their
account.
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Consumer access to alternative dispute resolution is
mandatory in some regulated markets, and over half a million
consumer complaints were resolved in this way in 2016.
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According to Ofcom, 40% of people have never switched
their mobile provider, and an estimated 70% have never switched
landline.
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In 2016 7.7 million gas and electricity customers (16% of
the market) switched supplier, but around two thirds of
domestic customers remain on poor value standard
variable tariffs.
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In March 2017, the average standard variable tariff for
Big Six customers was £1,086 and the average cheapest tariff
was £875, which shows that many customers could be saving
around £211 every year.
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The Competition and Markets Authority found that domestic
customers on standard variable tariffs were paying around £1.4
billion more than they would if the market were functioning
effectively.
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There are now over 50 energy suppliers in the domestic
retail energy market, up from 13 in 2010.
