Energy: Prices

(asked on 10th June 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of potential effect of loyalty penalties in the energy retail market on consumers.


Answered by
Anne-Marie Trevelyan Portrait
Anne-Marie Trevelyan
Minister of State (Foreign, Commonwealth and Development Office)
This question was answered on 18th June 2021

The Government is tackling the loyalty penalty experienced by households who do not shop around for their energy supply, which the Competition and Markets Authority has estimated, creates a £1.4bn average annual detriment to those consumers. We legislated for a price cap in 2018, which saves households £75-£100 a year on average. Ofgem, the sector regulator, is working to make it easier and quicker for households to switch energy deal. As set out in our Energy White Paper, the Government will introduce an opt-in switching scheme and trial out-out switching to help more households get a better deal on their energy.

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