We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue
Secured Loans > Energy consumers are ‘paying too much’

Energy consumers are ‘paying too much’

7th July 2015 | Published by Evolution Money

Gas-250x166Energy customers have been paying too much for gas and electricity, according to the Competition and Markets Authority (CMA).

The big six: EON, EDF Energy, Scottish Power, NPower, British Gas and SSe, charged their customers a total of £1.2 billion more than they would have done had they been operating in a competitive market, the CMA said.

The report published by the CMA was the result of a yearlong investigation into the energy market.

Customers who bought both gas and electricity from their provider would save £160 a year by switching.

Households spend an average of £1,200 on energy every year. For those on very low incomes, this often represents 10 per cent of their overall expenditure. Those on low incomes without qualifications, living in rented accommodation or over 65, are most likely to be on an expensive variable rate, having failed to switch to a cheaper tariff.

Had the energy market been more competitive between 2009 and 2013, said the CMA, households would have paid around £1.2 billion less in energy bills, while small businesses would have paid £500 million less in total. The big six energy suppliers knew that large numbers of their customers were inactive and exploited them through their pricing policies, the CMA said.

Citizen’s Advice found that those who have a prepayment meter are often charged the highest tariff. Ofgem found that these people are also often charged by the energy company for the fitting of the meter.

The CMA has suggested a number of courses of action, one of which is to place a cap on the price of energy while the current market is reformed. However, the government has already said that it does not think a price cap is an appropriate course of action.

The price of gas has risen by 125 per cent during the past decade. Electricity prices have increased by 75 per cent over the same period.

Category: Money
This post was written by Evolution Money
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.


Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
M1 3BE

Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2022 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice | Sitemap
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution