OVO Energy’s reaction to the CMA’s provisional findings report
Stephen Fitzpatrick, Founder and CEO, OVO Energy said;
“The CMA has today recognised that any business model which relies on profiteering and harming large groups of your customers is unacceptable, especially in a market for an essential commodity like energy.
“There is much to be encouraged by in the report: refocusing Ofgem on competition, cleaning up the price comparison sites, proposing measures to drive technology and system innovation, are all helpful.
“An over-reliance on cumbersome regulation – the four tariff rule, in particular – has stifled innovation. It is a rule that never worked in the favour of customers. We welcome the proposal to abolish it.
Ending the abuse of loyal customers
“For years, the Big Six have relied on an inflated income stream from overcharging the millions of their customers left languishing on variable tariffs. These customers are loyal – they don’t switch. Many were inherited during privatisation, many of them are vulnerable.
“A regulated safeguard tariff, set at a much lower price, could save the country’s billpayers billions of pounds, and force the Big Six to start operating fairly and efficiently.
“The CMA and the Government now need to stand firm against the inevitable onslaught of Big Six lobbying and deliver real, positive change in the energy market.”