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Customers 28 | 4TH - 10TH MARCH 2016 | UTILITY WEEK "The CMA must ensure that the energy market works for consumers, not for the big energy firms." C onsumers consistently tell us that energy bills are one of their biggest financial concerns, so any cut in prices is welcome. But given a slightly warmer winter and reports that wholesale energy costs have hit a five-year low, many will ques- tion why our energy suppliers were so slow to cut bills and why the reductions are so little, so late. Since the launch of our Fair Energy Prices cam- paign, we've received powerful stories of people's experiences with their energy supplier and this week presented a dossier to the Competition and Markets Authority (CMA) with a snapshot of stories from 30,000 consumers on the need for change. Many supporters told us that vulnerable people need to be better protected and shouldn't have to make a choice between heating their home and feeding their family. We've heard many stories about how people feel they're paying over the odds for their energy and that this is unfair. We've heard concerns about the switching process and the difficulties in being able to switch. Some people worry about the older generation not being as internet savvy and therefore paying more than they should for their energy. Others query why it takes so long to switch, saying it should be done in a matter of days rather than weeks. Consumers say informa- tion on energy usage needs to be in plain English and bills are still unnecessarily confusing, making it difficult to compare. These stories from real consumers confirm our belief that the energy market really isn't working for consumers. In a truly competitive energy market, companies would be fighting much harder to keep their customers. We have a market dominated by big players with low levels of customer satisfaction, so people lack the confidence to move to a better deal and save money. With seven in ten (71 per cent) gas customers stuck on standard tariffs with the big six, the majority of customers are missing out by not switching. This is the challenge the competition inquiry has to address. Over two years ago, the CMA was given the task of fixing our broken energy market and making it work for consumers, not for the big energy firms. With millions of people paying more than they should and the number of vulnerable consumers get- ting a bad deal, a lot rides on the outcome. We hope they seize this opportunity to propose real solutions for consumers struggling with their energy bills. Opinion Richard Lloyd, Executive director, Which? Financially vulner- able customer survey According to a study con- ducted by Baringa Partners, nearly one in three people in the UK consider themselves to be financially vulnerable. One in five does not have enough savings to cover an unex- pected bill of £300. Nearly one in seven has significant health issues that affect their day-to-day life, and nearly one in every 20 people in the UK experiences serious financial difficulty, that is, they are worried about money most days and do not always have sufficient money to cover their basic needs. The Baringa research shows that those who consider them- selves financially vulnerable are over 25 times more likely to struggle to pay their energy bills to keep their homes warm and are over 40 times more likely to find it difficult to keep up with repaying their debts, highlighting a need to help these customers with their energy needs and financials. The government is keen to be seen to be tackling high energy bills and also dealing with the issue of fuel poverty, despite the tail- ing off of the Green Deal and the imminent end of the Energy Company Obligation (Eco). Energy secretary Amber Rudd has said the government will be looking to replace Eco with a scheme that will improve the energy efficiency of one million homes by the end of the parliament – 200,000 a year – and will focus on those in fuel poverty. Under the coalition administration, the fuel poverty strategy was published in March 2015 and set out plans for the following 14 years, aiming for "as many fuel poor homes as reasonably practicable" to achieve a mini- mum energy efficiency rating of Band C by 2030. The government also offers a winter fuel payment to the elderly fuel poor through tax-free cash towards their heating bills. The payments only apply between November and December and a similar scheme is in place for those on benefits struggling to pay their energy bills in the winter months – the cold weather payment – which applies between November and March. The energy suppliers' much-trumpeted cuts to domestic gas tariffs offer some res- pite to the impact of energy bills. The com- panies were mostly reacting to sustained low wholesale prices, but with cuts at an almost uniform 5 per cent, some observers said they did not go far enough. Independent suppli- ers have also reduced their customers' bills. Whether it is through direct action (by awarding grants to help customers pay their bills or reducing their consumption to reduce what has to be paid) or offering social tariffs or debt repayment programmes, the utilities are acting. What is clear, however, is that more still needs to be done. "Energy costs are always at the centre of our minds in this government, in order to make sure we put as little pressure as possible on hard-pushed households, and that will remain so." Energy secretary Amber Rudd Specific or un-met needs Financial health Potential vulnerability DRIVERS OF VULNERABILITY