Which? has proposed that the CMA commits to review and measure that the remedies are achieving their aims of increased consumer engagement and effective competition in two years time, following its concerns that the remedies “still do not go far enough to ensure that the energy market works well for customers.”
The response adds: “The CMA should set out how this testing will continue beyond the final remedies to make sure that the measures put in place will deliver sustained engagement by consumers with the market.”
The two-year investigation looked at competition and engagement within the energy retail market and published its provisional remedies in March. The CMA’s final remedies are expected to be published in June.
In December, the CMA said that technical limitations of prepayment meters limit suppliers’ ability to innovate and offer suitable tariffs to these customers. It stated that prepayment meters “give rise to a number of detrimental effects on customers”, who face higher costs than those on other tariffs.
The industry is divided over whether smart prepayment meters should be rolled out ahead of other smart meters, as recommended by the CMA, with the Data and Communications Company warning that prioritising prepayment meters would delay the rollout and force it to revisit its strategy.
Ecotricity, Ovo Energy and Co-operative Energy, on the other hand, have welcomed the idea, saying prepayment customers should receive the benefits of smart metering as soon as possible.