By Ian Walker
LONDON--The U.K. Competition and Markets Authority Tuesday
highlighted a number of issues in the energy retail distribution
market that need attention, but said overall the wholesale market
works well.
The CMA said a lack of transparency in the retail market and
plans designed to simplify prices aren't having the desired effect.
Duel-fuel customers could save an average of 160 pounds ($252.34) a
year by switching to a cheaper deal, it said.
"Lack of awareness of what deals are available, confusing and
inaccurate bills and the real and perceived difficulties of
changing suppliers all deter switching - and the higher price
levels reflect that suppliers can charge higher prices to these
disengaged customers," the authority said.
The CMA report, which follows a year-long investigation into the
market, points to a lack of transparency that is hampering trust in
the sector. "Wider availability of financial information, and more
effective communication of the impact of decisions on bills,
alongside a clear and transparent demarcation of responsibilities
between DECC and Ofgem - and a clearer, independent role for Ofgem
- would assist in making sure that policy is efficient, effective
and targeted at the right areas," it said.
The U.K. energy regulator asked for a full competition
investigation focused on the country's six biggest utilities,
following months of political wrangling over rising household
energy bills, last June.
The move comes as governments across Europe seek to damp down
public outrage over rising energy prices amid green-energy
subsidies and measures that have in some places added to bills. The
U.K. has been struggling with a declining supply of domestically
produced natural gas.
Britain's six biggest utilities--Centrica PLC (CNA.LN), SSE PLC
(SSE.LN) and U.K. subsidiaries of RWE AG (RWEOY), E.ON AG
(EOAN.XE), Iberdrola SA (IBE.MC) and Electricite de France SA
(EDF.FR)--have come under fire for rising bills for gas and
electricity.
(Selina Williams contributed to this article)
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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