The CMA suggested that suppliers disclose details of any non-smart prepayment customers to Ofgem. Customers who do not opt-out would have their details entered onto a secure cloud database to be accessed by other suppliers on a regular basis, possibly annually. This remedy aims to encourage suppliers to compete “more intensively” for prepayment meter (PPM) customers, according to the CMA.
The big six suppliers unanimously opposed the measure in their responses to the CMA’s consultation on PPM, published last week.
RWE, the parent company of Npower, stated in its response that there is “no credible basis on which the CMA can justify remedies such as… sharing of customer data”. RWE also expressed concern that suppliers could effectively “cherry pick high consuming PPM customers who may be viewed as potentially more profitable”.
Eon and EDF shared the view that the remedy was not justified and suggested it could reduce engagement instead of encourage it.
Scottish Power and Centrica, which owns British Gas, were opposed to the proposal because of concerns over privacy and data protection, with Centrica adding that should the CMA proceed with this remedy, it should identify “more secure alternatives” to a cloud database.
SSE noted that PPM customers, unlike direct debit customers, are not currently obliged to provide their supplier with any personal information, making the process of gathering the data “time-consuming and expensive”.
A majority of the big six also raised concerns over the level of marketing customers might receive if their data was shared. Even if companies were restricted to contacting customers no more than once per year, this could lead to around 30 unsolicited marketing contacts each year per customer.