The Competition and Markets Authority (CMA) has released some of the final orders to implement changes in the energy market, after the conclusion of their investigation into the energy sector at the start of 2016.
The orders were published on 14th December and included the CMA’s proposal for supporting microbusiness customers. During its investigation the CMA found that microbusinesses had been paying about £180mn per year more than they would have in a more competitive market and around 45% of them were stuck high “default” tariffs. At the moment, when some microbusinesses come to the end of their contract with a supplier, they are transferred onto a “rollover” contract which is more expensive.
Starting next year the CMA has ordered that suppliers will need to stop using high exit fees to keep microbusinesses in these types of contracts and to ensure that microbusiness customers can get a better idea of what they should be paying for their energy plus what alternatives are out, suppliers will also have to publish their prices.
Roger Witcomb, chairman of the investigation, said: “These measures will reach the very customers who have been paying too much for too long. […] We’re also helping small businesses to see which prices are available to them, and ensuring they can’t be locked into the most expensive contracts.