Energy bill could be cut for millions of customers
An energy bill price cap has been proposed by the Competition and Markets Authority (CMA) for households which have pre-payment meters, which could result in savings for millions of low-income households.
This is part of attempts to boost the competitiveness of the energy market, in order to help customers lower their spending.
The energy market has been the subject of 18-month investigation, carried out by the CMA, who reported that had there been a competitive market, consumers could have made a saving of £1.7bn in total each year.
Ofgem, who regulates the energy market, has also been asked to record information from consumers who have been on a standard rate for a time period of three years. The information will be stored in a database which can then be accessed in order for the consumers to receive direct targeting from rival suppliers offering cheaper energy rates.
Under the CMA’s proposals, households would be able to save approximately £90 through the use of price controls, reportedly.
“Energy customers should get a fair deal from a market that works for them,” said Amber Rudd, the energy secretary. “That’s why we called for the biggest ever investigation into the energy market, and won’t hesitate to take forward its recommendations.”