Ofgem fired the starting gun on the investigation yesterday after politicians and consumers raised repeated concerns that the big six companies are not competitive enough and have been failing to offer their customers fair deals on energy.
“Now is the right time to refer the energy market to the CMA for the benefit of consumers,” Dermot Nolan, Ofgem chief executive, said.
“There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air. This will help rebuild consumer trust and confidence in the energy market as well as provide the certainty investors have called for,” he added.
The energy industry trade body, Energy UK, welcomed the investigation adding that it will “put to bed the toxic debate” over prices.
Chief executive of big six supplier npower Paul Massara added: “We repeat our support for a full competition inquiry that will provide solid, lasting evidence about the state of competition in the energy market today.”