Energy regulator fires warning shot over Britain’s cheapest energy supplier
Meanwhile, the energy regulator is poised to crack down on a pair of energy market minnows which it has accused of collusion in order to secure a foothold in the supply market for customers on pre-pay energy meters.
Economy Energy and E are accused of striking a deal to prevent the suppliers from actively targeting each other’s customers through face to face sales.
Ofgem said Dyball Associates, a consulting firm, supplied the software to allow the pair to share commercially sensitive material including customers lists.
The regulator said these arrangements “prevented, restricted and distorted competition amongst energy suppliers”.
“At this stage in the investigation, our findings are provisional. We have not found there has been a breach of competition law. We will carefully consider any representations from the companies before deciding whether the law has in fact been broken,” Ofgem said.
Neither Economy Energy, or E, were available to comment on the allegations.
The latest signs of strain for Britain’s emerging breed of micro energy suppliers emerged just days after energy minister Claire Perry urged customers to switch away from the standard energy offerings of the Big Six suppliers to one of the cheapest deals in the market.