Investors in energy suppliers SSE (SSE) and C entrica (CNA) can breathe a sigh of relief after the Competition and Markets Authority (CMA) decided against recommending a widespread price cap on the most expensive energy bills, as it concluded its two-year investigation into competition in the energy market. Instead the watchdog limited its proposals to a transitional price cap for the 4m customers on prepayment meters.
The CMA also toned down its earlier claim that the 'big six' had been overcharging customers, instead referring to how some customers paid "more than they need to". However, the CMA did reiterate its earlier proposals that would make suppliers hand over details of any customers who have been on an expensive default tariff for three years or more to an Ofgem-operated database so that rivals can get in touch to encourage them to switch. Other proposals included giving price comparison websites more access to meter data to allow customers on prepayment metres to switch more easily.
