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Gocompare.com welcomes CMA’s proposed energy reforms

10 March 2016

Comparison website Gocompare.com has welcomed today’s proposals from the Competition and Markets Authority (CMA) to reform the energy market and help customers get a better deal.

Ben Wilson, energy spokesperson at Gocompare.com, said: "The CMA is right to consider more drastic action as the consumers that haven’t switched so far are going to need a lot more support and encouragement to find a better deal. While the ‘carrot’ of cheap fixed tariff energy deals has been dangling over consumers for some time now, the CMA wants to take a stick to the big providers who it feels aren’t doing enough to encourage competition.

“The price war that has brought energy costs down dramatically in the last couple of years, stimulated largely by the new providers in the market, has passed many households by.   From our own research*, 43% of households have switched energy provider in the last three years but 57% haven’t, with almost a third saying they have never switched energy provider.”

Gocompare.com’s research outlined the reasons why these consumers haven’t switched. 27% say it is too much hassle, 16% don’t trust energy companies to save them money, 7% aren’t confident enough to switch and 5% are worried their supply will be interrupted by switching**.

Ben Wilson continued, “As a result, we now have a two speed energy market with an informed and confident minority using comparison sites to switch energy provider and save up to £292 or more***, while the majority of households either aren’t aware of the potential savings or aren’t confident enough to switch.  There is no incentive at the moment to help these people – many of whom are sitting on one of the big six providers’ standard variable rates.”

Read Gocompare.com's guides for more information on switching energy supplier.

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Notes to editors:

* On 5 January 2016, Bilendi conducted an online survey among 2001 randomly selected British adults who are Maximiles UK panelists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
** On 21 September 2015, Bilendi conducted an online survey among 1,302 randomly selected British adults who are Maximiles UK panelists and homeowners. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.

*** At least 51% of customers who provided their energy usage and received a price for switching energy supplier for both gas and electricity with Gocompare.com saved £292 or more. (1st July - 30th September 2015)