Competition investigation could cut energy costs

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

Electricity firms have been threatened with a competition investigation - which could force down the cost of electricity for consumers considering switching supplier.

The announcement by Ofgem follows the introduction of tougher contracts by suppliers, which impact on both small and large customers.

Many are now required to pay a deposit for their energy – something which could increase the amount of time people have to wait before they can change their supplier.

Alistair Buchanan, chief executive of Ofgem, said that the organisation is ready to mount an investigation if energy companies fail to honour a new voluntary agreement aimed at stamping out unfair electricity and gas tariff contracts.

According to the Daily Telegraph, small and medium-sized firms are being squeezed by the new rules, which energy firms claim have been put in place to safeguard against the risk of non-payment.

Meanwhile, E.ON and British Gas appear to have instigated an energy price war after they both dropped the price of their standard consumer tariffs.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.