Utilities Cost Reduction: 60% of consumers not changing suppliers

Ofgem the energy watchdog which promotes fair competition across the energy market bared its teeth last week in a broadside against some of the largest utility companies.

The body is looking into a wide range of consumer allegations chief amongst which is the charge that they are frustrating companies who are wanting to switch suppliers. A recent review of these suppliers also revealed that competition is not being allowed to flourish allegedly through a mixture of tariff complexity, poor supplier practices and a lack of transparency.

Ofgem research uncovered the statistic that 60% of consumers have not considered changing suppliers and are thus not shopping around for the most competitive energy deals. Ofgem described consumers as “disengaging from the market” and simply remaining with their long term supplier, when viable alternatives may be available without impacting on service levels.

Thus far Ofgem has not fallen victim to the “bonfire of the Quangos” and chief executive Alistair Buchanan appears to be determined to obtain a better deal for energy consumers. The clear message for businesses is always to shop around for the most competitive deal from your utility supplier.