Are you still paying too much for your electricity
Still not switching
Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households £1.2bn a year more than they would have in a competitive market, the Competition and Markets Authority (CMA) has found.
The average household spent about £1,200 on energy each year. For the poorest 10% of households, energy bills now account for about 10% of total expenditure, the CMA said.
Those on low incomes, with low qualifications, who live in rented accommodation or are aged over 65 are most likely to remain on the more expensive variable rate, having failed to switch.
Domestic customers paid about £1.2bn more and small business customers paid about £500m more a year than would have been the case had competition functioned more effectively between 2009 and 2013.
The big suppliers, aware of these inactive customers, were able "to exploit such a position through their pricing policies", the CMA said.
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Added Tuesday 7th July 2015