London, United Kingdom (25th January, 2013) – EnergyQuote JHA, one of the leading energy risk management specialists in the UK, comments on a recent report released by the Energy and Climate Change Committee.
To increase transparency and competition in the energy market, the Energy and Climate Change Committee have compiled a report which focuses on consumer engagement within the energy market. The Committee highlights potential changes that could be made to restore consumer trust in the energy sector, ultimately concluding that the ‘Big Six’ vertically integrated energy companies should report on how much energy they have bought from or sold to themselves.
In the report, the Committee recommends that the Department of Energy and Climate Change (DECC) should hold a discussion regarding the contribution that consumers will need to make to ensure the provision of secure, responsive and affordable energy supplies in the future.
The Committee also advises DECC to investigate with stakeholders the possibility of creating an independent organisation, to provide customers with an impartial service they can trust when in need of energy advice.
The report also raises the Committee’s concerns that the main aims of the recent Retail Market Review (RMR), published by the Office of the Gas and Electricity Markets (Ofgem), could possibly not be achieved, especially if consumers are encountering difficulties when comparing tariffs from the Big Six.
Under the updated RMR proposals, the Committee believes consumers would not be able to compare tariffs easily, and suggests that Ofgem should be prepared to amend the measures it has implemented under RMR if there is no evidence after 12 months that they are making the process of switching between the Big Six any easier for consumers.
Another aspect of the report focuses on the Committee’s belief that the government’s recent announcement on energy tariff simplification has caused confusion, as it has not been made clear whether the PM’s proposals will make Ofgem’s updated RMR proposals redundant.
They conclude by saying that if the government’s plans take longer to implement than Ofgem’s RMR proposals, this would only further delay the benefits to consumers.
Gary Worby, Managing Director at EnergyQuote JHA, commented: “Consumers currently don’t have all of the information they need to make an informed decision on which company they turn to for their energy, and therefore trust in the Big Six isn’t as high as it could be.
“Consumers are particularly put-off by the intricacies of evaluating their energy bills, which results in many people simply selecting one supplier and avoiding the process of switching altogether.
“To combat this issue, the government should therefore be doing all it can to increase competition in the energy market, and we hope that they will take on-board the valid points made in the Energy and Climate Change Committee’s report.”
For more information on EnergyQuote and their energy management services, visit their website at http://www.energyquote.com.
About EnergyQuote JHA:
EnergyQuote JHA is a market-leading energy and carbon consultancy. The company helps professional energy buyers, across the globe, to achieve sustainability objectives, while reducing energy costs. With more than 35 years experience in the oil, power, gas and carbon markets, EnergyQuote JHA delivers risk management, portfolio management, carbon emission reductions, reporting, and forecasting and energy contract management.
Contact:
Dorin Minciuna
Energy Management Brokers Ltd
66 Hammersmith Road
London, UK
Zip: W14 8UD
Tel: 0207 605 2300
Email: d.minciuna@energyquote.com