Energy customers 'missing out on savings'
Britain's major energy firms are effectively penalising loyal customers for failing to switch, a new report has suggested.
According to the findings of an inquiry carried out by the Competition and Markets Authority (CMA), between 2012 and 2014 some 95 per cent of big six dual-fuel customers would have saved money had they switched to another tariff.
The CMA calculated that the annual savings they missed out on ranged between £158 and £234 per customer. In addition, the study found that complaints recorded by the big six energy firms rose fivefold between 2007 and 2013.
"We note that increasing numbers of complaints may reflect: declining quality of service; price rises; changes in reporting standards; increasing media scrutiny of the sector; or a combination of these factors," the CMA report noted.
In addition, the CMA observed that between 40 and 50 per cent of customers had been with the same energy supplier for more than a decade. It also pointed out that many customers were inherited by major energy firms upon privatisation in the 1990s.