Full Energy Sector Probe Launched in The United Kingdom
As has been expected here at Love Energy Savings and among the entire energy sector for some time now, a full enquiry into the energy industry has been launched. It is hoped that this probe, an extension of the one initiated by Ofgem earlier in the year will help to reduce energy prices and improve levels of customer service dramatically.
As the energy industry’s regulator, Ofgem saw fit to embark on their own inquiry during 2014. This has resulted in several members of the Big Six being fined for mis-selling and failure to provide power, amongst other things. Although this inquiry has resulted in raised levels of customer service and better standards, it is though that this full probe will reshape the market.
Disillusioned Home & Business Energy Customers
Indeed, it is no secret that both home and business energy customers have become disillusioned regarding their relationship with their energy supplier and levels of distrust are thought to be at an all-time low, especially with the Big Six supplier – the very providers which have been recording record profits despite their poor performances.
The full scale inquiry will be conducted by The Competition and Markets Authority (CMA) and the outfit has stated that it will have a “broad scope”. The ultimate goal of the inquiry will be to achieve “the opaque wholesale market for electricity”.
What Will The CMA Be Looking At?
One of the key areas of the probe will look at whether or not energy companies can realistically be both generators of power and retailers simultaneously. Question marks have been raised as to whether or not this can be realistically achieved, whilst at the same time looking out for the interests of commercial and domestic energy customers.
Ever increasing energy bills, inappropriate levels of customer service, increasing profit margins and a lack of confidence in future investment have all indicated that the above may not be possible and that major reform may be the only prudent way forward for what is perhaps the most tumultuous industry in the UK at present.
The Complicated Energy Industry
Such is the complexity of the UK energy sector, that it is necessary to have these inquiries by Ofgem as well as the CMA. As such, it may turn out to be a rather long process and at the outset, the inquiry will look to focus on the most important issues and challenges facing the gas and electricity sector. The first of these is thought to be how easy it is for customers to switch supplier; something we take very seriously here at Love Energy Savings. Many have called for switching to become possible in as little as three days, or even the very same day – at present this takes several weeks.
What we can tell you is that the CMA will definitely not be looking into gas wholesale or energy distribution.
Positive News for Energy Customers
So, following Ofgem’s referral of the energy industry to the CMA it can surely only be a good thing that the profits of the energy companies are to be scrutinised. Love Energy Savings will be hoping this means yet more savings for your home and business and you can find out just how much you can save by performing a free, no-obligation energy comparison right here on the site.
Alternatively, you can check out the rest of the Love Energy Savings News Centre to learn more about the ever changing energy world.