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5 September 2012: Is there enough competition in the energy market?
Consumers facing a potential winter of price rises could benefit from greater competition, it has been suggested. The price comparison service energyhelpline has stated that the government could further encourage competition from small suppliers to offer more choices and value for bill-payers in the UK.
Energyhelpline.com director Mark Todd said, “The ‘big six’ still rule the roost in this sector and the government must do more to encourage competition, especially as consumers face more price hikes before what promises to be a cruel winter. We are facing the deepest recession in living memory and energy bills this year are set be the highest in UK history potentially topping £1,400 a year if other suppliers follow SSE’s lead.”
“Small steps may have been taken to encourage competition, including the waiving of some ‘stealth’ tax for smaller suppliers, such as Ovo, Co-op and first:utility, but consumers are still facing a market dominated by the major players,” Todd continued.
The price rise announced by SSE last week created a huge tidal wave of switches, with many consumers fearing that other suppliers will indeed follow. In fact energyhelpline.com saw a 160% rise in switching numbers in just one week.
Summing up, Mark Todd stated, "What the big suppliers have done is reduced the number of tariffs on offer but haven’t addressed the confusion that many consumers face when deciphering jargon and changing rates. The government should not only encourage competition, but simplicity. Now is the time for the government to shake up the market and for consumers to take the driving seat, continue to switch when they can and demand more from their suppliers.”
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