CMA panellist insists energy inquiry ‘did not go far enough’

A panellist on the Competition and Markets Authority’s investigation into the energy market has expressed concern that the remedies do not go far enough to fix the market, and called for wider price controls to protect consumers.

The CMA published its final report containing remedies to fix competition and engagement within the industry last week, following a two-year investigation.

In a statement of dissent at the end of the report, panel member Martin Cave said: “I respectfully disagree with my colleagues over an important aspect of the remedies adopted for the domestic retail energy market.

“I do not oppose the proposed remedies, but I do not think they go far enough. It would be very good news if they did work speedily, but I am far from confident that they will.”

Cave said that the proposed remedies will take time to come into effect and are untried and untested, which makes it “risky to rely on them”. Referring to the Ofgem-controlled database and the rollout of smart meters, Cave outlined how a wider price control could be jointly beneficial.

“A natural supplement to the above measures is the application of a wider non-renewable price cap for a short period – say two years.

“This approach has the potential to give all [standard variable tariff] households some reliable and speedy relief from the very high charges they are currently facing.”

“We have seen a variety of measures covering… Barrages of publicity adverse to energy companies, concerning the level of their charges… Yet none of these developments has made a dent in the proportion of customers of the six large energy firms which remains on the standard variable tariff,” Cave said.

The report has also faced criticism from consumer group Which? when the former executive director Richard Lloyd told Utility Week it was a “damp squib” and independent supplier First Utility agrees that the remedies have been watered down and could make the market worse.