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CMA to probe further into barriers in rental market

The Competition and Markets Authority (CMA) is to conduct extra research for its investigation into the energy market on specific barriers facing customers in rented accommodation.

The CMA said it has received information which suggests that living in rented accommodation presents specific barriers to engaging with the energy market. the regulator has therefore appointed research agency Ipsos Mori to conduct further research into this area.

The CMA’s previous research underpinning its provisional findings published in July found that 30 per cent of respondents responsible for energy decisions live in rented accommodation.

Renters reported relatively low levels of awareness and of engagement in the energy market in the research, particularly amongst social renters.

The CMA said it has also received information suggesting that renters may be subject to restrictions limiting their ability to switch supplier.

Both Citizens Advice and Uswitch have called upon the CMA in recent weeks to address misleading contract terms which are resulting in renters believing they do not have the right to switch energy provider without their landlords permission.

The CMA has offered a two-day window for comment on the proposed research methodology, citing “the tight timetable which is necessary for this work” for the 9 October deadline.

The CMA’s final findings into the energy market were expected in December, but last month energy suppliers were told they would have to wait another six months for the findings after the CMA decided it needed to “refine its analysis.”

The final findings are now expected in April 2016.