Guidance

Modernising the energy markets: benefits for users at home

Published 24 June 2016

© Crown copyright 2016

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This publication is available at https://www.gov.uk/government/publications/energy-market-investigation-information-for-consumers/modernising-the-energy-markets-benefits-for-users-at-home

You could save around £300 now if you switch.

It’s going to be easier for you to get cheaper energy and to understand what is happening in the energy markets through the changes we’re making.

Pre-payment meters

It will be cheaper to use a prepayment meter

  • If you’re on a domestic prepayment meter it’s more difficult for you to switch supplier, and you have far fewer tariff choices.
  • We’re limiting what you pay on a prepayment meter until smart meters have been rolled out and it’s easier for you to switch. This could save you £75 a year.

You could save a lot of money by switching

  • If you have been on a standard variable tariff for at least 3 years, you are probably paying more for your energy than you need to: you could save around £330.
  • To help save you money you’ll be prompted to switch. Other suppliers will be able to write to you, telling you how much money you could save if you switched to them and making it easier for you to choose the best deal for you.
  • The prompting system will be closely controlled: you’ll be able to opt out and there will be no irritating telephone calls, texts or emails.
  • You can switch now: www.goenergyshopping.co.uk and you can compare energy prices at Citizens Advice.
  • You can find out more about how energy prompting will work at www.gov.uk.

An improved market for everyone

These changes will help consumers by protecting those facing the highest prices; showing those who are overpaying what they could save; and improving the market for all.

Why is this important?

The CMA has carried out a review of the energy markets – and will implement remedies that will improve it for domestic and microbusiness customers.

Our analysis has shown that, in total, consumers have been paying about £1.4 billion a year more than they would have if the markets had been more competitive.

Email: energymarket@cma.gsi.gov.uk

For more information see the energy market investigation case page.

These materials do not constitute legal advice and should not be relied upon as such.

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