Page 9 - Gi flipbook February 2018

Energy suppliers slammed for failing

to move customers to cheaper deals

ENERGY COMPANY households to better deals. Centrica’s Sarwjit Sambhi,
BOSSES have faced a Senior executives at SSE, both told MPs that their
blistering rebuke by a Eon UK, and British Gas companies were going a
cross-party panel of MPs owner Centrica told MPs step further by ruling out Rachel Reeves
criticising them for failing to they contact customers on standard variable tariffs
offer cheaper energy deals standard tariffs, or around (SVTs), earning sharp
more than once every two two thirds of their total criticism from Ms Reeves for energy bills for customers
to three months. customers, between four overstating their ambitions. on SVTs.
The select committee and six times a year to Eon’s plan to phase out The move is expected
interrogation, led by Rachel offer a better energy deal SVTs applies only to those to knock hundreds of
Reeves MP, lasered in on alongside their bills. customers who are opting to millions of pounds from
energy companies’ efforts to Meanwhile First Utility, have a smart meter installed. the sector’s earnings and
move customers from “rip- a newer supplier with a British Gas plans to stop threatens to damage the
off” standard energy tariffs far smaller proportion of rolling customers onto SVTs progress made in boosting
to cheaper fixed deals, customers on standard at the end of their fixed competition in the market,
according to The Telegraph. deals, contacts its contracts or offering the deal but policy makers insist
The high number of customers 13 times a year. to new customers. that customers must be
customers on standard “We actively engage our “You’re here to answer protected from paying over
tariffs is the main driver customers to choose a my questions and not the odds for their energy.
behind government’s deal that’s right for them. deliver your PR blurb,” said Mr Lewis told the
controversial plans to cap That’s the fundamental Antoinette Sandbach MP. committee: “I think it is right
energy bills across the difference,” said First The tense committee that someone who hunts
market. But Ms Reeves said Utility’s Ed Kamm. meeting was part of out the best deal for them
the suppliers were still not Michael Lewis, Chief its examination of the gets a better deal – that’s
trying hard enough to move Executive of E.on UK, and government’s plan to cap the way markets work.” ■

Energy minnows risk cash crunch after failing

to pay into vulnerable customer scheme

TWO ENERGY SUPPLY crowded market. Flow vulnerable customers over gas market price spike the
minnows have failed to Energy and Spark Energy the winter, when bills are at regulator is already closely
meet a key payment were both expected to pay their highest. monitoring individual
deadline for the into an Ofgem-run funding In a letter to the group, suppliers, with a focus on
government’s warm home pot, which is backed by a seen by The Telegraph, the financial indicators, in a bid
discount scheme, fuelling 15-strong group of energy regulator said two suppliers to avoid a second supplier
growing fears of a financial suppliers. The scheme aims missed the 11 December collapse in as many years.
crunch for small suppliers to cut up to £140 from payment deadline, meaning This time last year, GB
due to rising costs in the energy bills for the most the rest of the group will Energy told its 160,000
need to foot their share of customers that a sudden
the cost. surge in energy market
The group includes major prices had forced it to close.
Big Six suppliers as well The customers were rescued
as smaller energy firms by a financial safety net paid
including Ovo Energy, First for by other suppliers in the
Utility, and Utilita. market before Co-operative
The skipped deadline Energy agreed to take the
has reignited concern accounts on.
that the new breed of A spokesman for Flow
energy supply minnows said that the troubled
may face unsustainable supplier had deferred
The scheme cuts energy financial strain within the its payment to push the
bills for vulnerable increasingly competitive expense into the group’s
customers over winter energy market. next financial year. ■
In the wake of a major

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News.indd 4 18/01/2018 11:18