10th Mar 2016
Millions of low-income households could see power bills cut after the Competition and Markets Authority (CMA) issued a report into the UK's energy sector. The CMA has proposed a price cap for all households using pre-payment meters and also that the regulator, Ofgem, keeps a database of customers that have been on a standard rate for three years.
Responding to the proposals, Jo Causon, CEO of the Institute of Customer Service, says:
"Giving customers more choice in any sector drives innovation, keeps the industry agile and responsive while pushing suppliers to provide excellent customer service to make sure they retain existing customers. By giving rival energy companies the opportunity to directly approach their competitors' long-term customers to offer better deals, the opportunity to change providers is even greater. We would expect more people to switch incentivising energy companies to focus even more on customer service.
“According to the latest UK Customer Satisfaction Index, although still amongst the worst performers, energy is now the fastest improving sector. While we are very encouraged by some of these recommendations we will continue to monitor the sector to determine whether these measures have the desired effect."