The Competition and Markets Authority (CMA) has published its final report following its investigation to examine whether the energy market is competitive. It was initiated by the industry regulator, Ofgem, and began in June 2014. During the investigation the CMA has gathered information about how energy companies operate, and how consumers (businesses and households) interact with them. The CMA’s investigation identified ways in which competition might not be as effective as it could be, and suggests possible changes to the market to make it work better for consumers. Since the CMA started its investigation, competition has continued to intensify, with the number of suppliers growing from 25 to more than 40.
Centrica plc has contributed fully to what has been a thorough, in-depth and challenging investigation by the CMA into the UK energy market. We’re currently going through the report to understand what it means for our customers and our business and we now look forward to working with regulators and other interested parties as we implement the outcome to deliver even further competition in the market to benefit customers.
In March 2016 the CMA published a list of provisional changes to be made to the UK energy market. Two of the key proposals were:
- A safeguard tariff for pre-payment meter customers until 2020
- A database of customers who have been on standard variable tariffs for more than three years to be made available to other energy suppliers
Since then there has been a period of consultation to allow interested parties to give their feedback on the CMA’s proposals and for the CMA to consider any further changes before submitting its final report. We have reviewed the executive summary of the CMA’s Final Report and believe that many of the remedies will further enhance the market and benefit customers.
Following the publication of the Final Report we will continue our focus on developing innovative products, giving customers in the UK more choice and competitive offerings.
Iain Conn, Chief Executive of Centrica plc, said:
“Delivering for the changing needs of our customers is at the heart of what we do at Centrica. We are determined to ensure that our company and the market in which we operate best serve consumers of energy and services.
“Our focus now is to understand in detail how these remedies will be implemented and to work to create an even more effective market for those customers.”