Energy suppliers ‘not excited about customers engagement’, says Ofgem

Energy suppliers ‘not excited about customers engagement’, says Ofgem

by Big Mac

Pylons-1

Energy suppliers are not keen on implementing measures to engage customers with the market.

That’s according to Rachel Fletcher, Senior Partner at Ofgem, who was speaking at an event in London.

Her comments come as the regulator is working towards implementing the recommendations from the Competition and Markets Authority (CMA) following a two-year investigation.

They include the creation of a secure database that will have details of all customers who have been on their default tariff for more than three years.

That will allow rival suppliers to contact them by letter and offer cheaper and easy tariffs.

The CMA also recommended setting a price cap for prepayment customers and allowing price comparison sites to only show tariffs that pay them commission regardless of whether or not they are the best deals.

However small suppliers argued that new comparison site rules will push up prices.

Ms Fletcher said: “I see a huge amount of interest and excitement around the removal of the RMR [Retail Market Review] four-tariff rule, see some quite exciting tariff offerings actually coming forward as a result which is great.

“I’m not seeing quite the same amount of excitement about engaging with us on the database or on carrying out random control trials to get better prompts to consumers to engage. It isn’t a pick and mix. If we don’t get that customer engagement working, we will not end the two-tier market that we currently have and we will very quickly as an industry find ourselves back at square one.

“We desperately need suppliers to co-operate with us on this. It will not go well if suppliers drag their feet.”