People involved in the investigation are quoted as saying that the CMA has decided a price cap should not cover everyone on default tariffs and should instead apply to only the most vulnerable customers.
The big six suppliers lined up against the measure after it was put forward in the CMA’s initial report in July. SSE described the measure as “onerous”, saying it was “neither proportionate proportionate nor well-targeted”. Centrica said it would have a “safe haven” effect, reducing the incentives for customers to become engaged and search for a better deal.
In September the CMA delayed the deadline for the investigation by six months, pushing it forward to June in order to deal with the numerous responses it received.
The Financial Times also reported that suppliers would be forced to open up their customer databases so that rivals could contact customers with better deals, and that a ban on suppliers offering more than four tariffs – imposed by Ofgem in 2014 – would be removed.
Analysts at Citi Velocity said: “Given the extent of the concerns that more drastic measures to be introduced we believe the market should take relief.”
They added that a decision from the CMA “should in itself allow investors to refocus more on fundamentals”.
The CMA is set to publish its provisional decision next Thursday, before taking in responses and releasing its final report in June.