Ofgem State of the Market Report “underlines why it’s so important that Ofgem tightens up its licensing rules”, says Citizens Advice
Category : Consumer Issues
Friday 12th October 2018
Citizens Advice has responded to Ofgem’s Annual State of the Market report. The report showed that the profits and market share of the six largest energy suppliers have fallen in the past year.
Gillian Guy, Chief Executive at Citizens Advice, said:
“It’s good news that more energy customers are shopping around, and switching to a new supplier or tariff. This is the best way for people to get the right deal for them.
“More competition in the energy market is positive. But the increase in the number of people with smaller and newer suppliers underlines why it’s so important that Ofgem tightens up its licensing rules. We know that some suppliers entering the market aren’t prepared to provide adequate customer service, or aren’t financially robust enough to survive.
“Poor customer service often hits vulnerable customers the hardest. Ofgem is right to call for further improvements by energy companies on how they deal with people on low incomes, the elderly or those with health problems.
“Ofgem must use its upcoming review of supplier licensing to address this problem. It needs to stop poorly prepared companies from entering the market, and take badly performing suppliers out of the market quicker.”