Today the regulator has set out its plans for the Competition and Markets Authority (CMA) remedies after a two-year probe into the market, and said it will be “making clear to suppliers that they cannot pick and choose the remedies”.
The price cap remedy for prepayment customers is an interim measure pending the full rollout of smart meters in 2020. The regulator claims the remedy will save customers an average of £75 per year from April 2017 and committed to update the level of cap as required.
Ofgem will pilot a database to go live nationally in spring 2018 and will work with behaviour experts in summer 2016 to design the most effective messages for the initial contact letter. It also highlights that protecting consumers’ personal data is a priority. In Autumn this year, Ofgem will consult on the licence requirement for suppliers to participate in trials.
The regulator also published separate statutory consultations for the removal of some of the ‘simpler tariff choices’ under its Retail Market reforms to allow more tariffs and on changes to the confidence code for price comparison websites.
The CMA proposed removing the requirement for price comparison websites to show the whole of the market but Ofgem believe that full removal is inappropriate at this stage. The regulator suggested an intermediate step which will remove dome of the changes made to strengthen the whole market requirement in 2015.
Ofgem chief executive Dermot Nolan said: “The CMA’s final report is a watershed moment for industry and consumers and points the way to a fairer and more competitive future. I call on energy companies and consumer groups to seize this opportunity.”
The regulator committed to publishing an annual State of the Market report in 2017 to assess progress within the retail market and monitor the effectiveness of the remedies.