Big Six energy firms exploiting loophole and lying to customers about whether they are on the best deal
Deals for new customers are between £75 and £258 a year cheaper than those for current ones
THE Big Six energy firms are lying to customers about whether they are on the best deal.
Many power giants only give the cheapest offers to new customers but they are supposed to tell existing customers on their statement if there is a lower tariff available.
These deals for new customers are between £75 and £258 a year cheaper than those for current ones.
Power giants are supposed to tell customers if they offer a cheaper tariff than the one they are one. This is normally printed on the statement.
But firms like EDF, Npower, E.ON and SSE are using a loophole that means they don’t have to warn existing customers of the cut-price deals used to lure families from other suppliers.
Incredibly, they have been given the green light to do so by watchdogs supposed to be helping reduce bills for families.
In June, the competition regulator published the results of its two-year review into the energy market that was supposed to find ways to end rip-off bills - which was widely regarded as a whitewash.
And one bizarre ruling in the Competition and Markets Authority report was that suppliers did not need to make tariffs available to everyone - meaning they could exclude current customers.
The energy watchdog Ofgem, charged with implementing the CMA’s ideas, has backed the move - with both saying it would prompt competition.
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It creates a loophole whereby firms do not have to tell customers on their statements about their best deals. They argue that they only need to tell customers about the cheapest deal for them as an existing customer - not the best deal the supplier offers.
With EDF, it’s cheapest gas and electricity tariff for current customers is £880 a year for a typical usage family.
But a household not with the firm can get it for £780.
So if you are an EDF customer on the £880 tariff, the firm will say you are already on its cheapest product.
If you are on one of its dearer, standard tariffs - which are £1,069 - it will tell the savings for switching to the £880 deal but not the one for new customers that is £100 less.
Will Hodson of consumer collective TheBigDeal.com said: “Lying to your customers is a digrace. God knows what else the Big Six are lying about. Noone should believe a word they ever say.”
SSE said: “The energy market is changing and SSE is working on ways to implement the remedies set out by Ofgem following the CMA report, including removing the restrictions on the number and type of tariffs suppliers can offer.”
EDF said: “We value our existing customers and are committed to doing all we can to ensure they are happy to stay with us.”