Energy Market Investigation

OFGEM Investigation in to the Energy Market

OFGEM, the Government Regulator for Great Britain’s Electricity and Gas markets have recently launched an investigation related to barriers of competition in the energy market under the backdrop of increased profits of the leading energy providers and sharply declining consumer confidence. Among the reasons for low consumer confidence is the common practice of energy providers to increase prices for customers who have not switched.

As OFGEM doesn’t have extensive enough powers to address the whole issue, it has referred this case to the Competition and Markets Authority (CMA) to make further investigations and establish a long term solution to help consumers regain confidence. This could mean that the “Big Six” energy suppliers could be split up to create a fairer market.

A month after the announcement, OFGEM started fining energy suppliers for mis-selling their services or for preventing customers from switching.

Recently, British Gas was ordered by OFGEM to pay a penalty and redress of £5.6 million for having blocked business customers from switching suppliers.

E.ON was issued with the most recent and at the same time highest penalty to date of £12 million which was for mis-selling to vulnerable customers which took place between June 2010 and December 2013. E.ON will pay £35 to 330,000 households that receive their “Warm Home Discount” and will write to another 465,000 customers to advise them how to complain if they believe they were treated unfairly. So look out for a letter from E.On if they supply your energy.

We believe this isn’t the last we’ve heard from OFGEM as more dubious practices get uncovered. In the meantime, consumers are advised to frequently switch energy providers to ensure they are not overpaying for the energy they are using.

Here at Switchwise, we are trying to make the switching process as easy as possible for you. We have an easy to use guide on our website on “How to Switch Energy Providers” or pop straight to our postcode checker so you can start comparing immediately.

Try it out now! Use estimates if you don’t have usage details to hand.

Free comparison service by
SwitchwiseTM | UKPowerTM | UswitchTM

Go Energy Shopping Campaign – Switchwise UK

We all like to make sure we’re getting the best deal, right?

When it’s time to get a new phone contract do you shop around for the best deal you can find? Perhaps argue a little with the rep on the phone? When you come to the renew your TV subscription do you at least look at other providers before deciding you like your deal? 

That’s why we shop around for energy prices too, in fact we think it’s even more important because unlike a mobile network service, energy is always going to be the same quality, regardless of the provider.

The Big Six energy providers have taken over the market and make it seem like there are no other options when in fact there are dozens of energy suppliers in the UK! That’s why we suggest you should act now and get the best deal for yourself.

Using a Price Comparison Calculator, you can find out the best deal for you and browse other energy providers and their offers. We think you shouldn’t just settle because you recognise the name or because you’ve been with them for 10 years, it’s all the same energy – it shouldn’t cost you a premium just because you’re provider says so!

Try out our Switchwise energy price comparison calculator to help you do your energy shopping!

Try it out now! Use estimates for how much you use.

Free comparison service by
SwitchwiseTM | UKPowerTM | UswitchTM