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Green Energy is the latest supplier to criticise the final recommendations from the Competition and Markets Authority (CMA) saying postal marketing will irritate the consumer and “is not particularly green” or modern.
The CMA’s final report was published last week (24 June) and has faced criticism from consumer groups, independent suppliers and one of its panellists, Martin Cave, for being watered down and not going far enough with its remedies.
Green Energy chief executive Douglas Stewart said: “Sending people loads of junk mail, will irritate the consumer and it is not particularly green.
“This time they’ve actually published the word ‘postal’, so we can’t phone them or send them an email but we can send them a letter – well, that’s very 21st century.”
Stewart added that customers have been aware of their ability to switch since 2002 but that none of the recommendations were likely to increase switching numbers.
“Since the CMA started this survey over 40 suppliers have entered the market. They can’t all compete for the cheapest tariff because they don’t make enough money to stay alive.
“I don’t believe that the cheapest tariffs being offered are sustainable. If you look at some of the eye-watering losses from the published reports of Ovo and Extra Energy they are making losses of 30 million per year,” he added.
Earlier in June, Green Energy called on Ofgem to “stress test” new suppliers to ensure that they are capable of providing utility services while holding customer money. The comments came in response to Ofgem’s consultation to protect consumer’s credit balance if their supplier becomes insolvent.
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