Consumer Engagement with Energy Markets

Consumer engagement with the energy market is low. The lack of engagement is linked to low levels of competition and a high proportion of customers who are unlikely or unwilling to switch energy supplier. With little incentive for suppliers to offer consumers a better deal, some customers are getting worse deals than others, which reduces consumer trust. Ofgem hopes to increase both engagement and competition by simplifying tariffs and making it easier to switch. The Government has pledged to require providers to give customers the cheapest tariff. The Committee suggests that indicators should be established to measure the success of these proposed reforms. Also, greater transparency is needed in respect of energy company profits and prices, to restore consumer confidence and streamlining the various sources of information on energy issues would also promote consumer trust. The Government's plans lack detail on how consumer access to information about energy efficiency will be increased. By highlighting these issues, the Committee hopes to kickstart a national conversation about the cost to consumers of investing in the provision of secure, clean and affordable energy supplies for the future. For oral and written evidence, see Volume 2 (ISBN 9780215052186)