ACS is calling on Ofgem to introduce a TPI (third party intermediaries) Code of Practice following publication of the Competition and Markets Authority (CMA) final report on reforms to the energy market.
The CMA’s two-year investigation recommended a range of changes to make both the domestic and non-domestic energy markets more competitive.
It found that thousands of consumers and microbusinesses (businesses employing fewer than 10 people) were paying more than they need for their energy, with many being on their supplier’s default tariff for several years. The CMA’s proposals are intended to increase competition between suppliers and help customers switch to better deals.
Measures recommended by the CMA that will affect small businesses include:
- Banning rollover contracts for microbusinesses;
- Allowing price comparison websites to play a more active role in helping customers find the best deal;
- Allowing rival suppliers to contact customers that have been on a default tariff for more than three years by letter to offer a better energy deal.
ACS chief executive James Lowman said: “We welcome the conclusion of the CMA investigation and the recommendation of the removal of rollover contracts, which ACS has been a strong supporter of for several years. However, there are still issues in the energy market that need to be resolved and it is now up to Ofgem to continue the work that they started before the investigation began. Specifically, we need to see the swift implementation of a code of practice to regulate the activity of third party intermediaries (energy brokers) – many of which continue to mislead retailers with bad deals and hidden charges.”
The full CMA energy market investigation report is available at: https://www.gov.uk/government/news/cma-publishes-final-energy-market-reforms
If you’ve had any issues with your energy company over the past two years, ACS would like to hear from you. The organisation says all correspondence will remain confidential, but will play an important role in shaping its discussions with Ofgem about greater protection for small businesses in the energy market. To get in touch, email Julie.firstname.lastname@example.org