New Ofgem marketing database following CMA report may lead to consumers being bombarded with mail shots.
- Ofgem tasked with implementing the CMA's findings that energy consumers are getting a bad deal
- Price cap for pre-pay customers to be introduced in April 2017, saving an average of £75 per year
- During 2017, those on default tariffs opted into a marketing database, enabling other suppliers to contact them by post
Onedox, the energy and household bills comparison calculator, welcomes Ofgem's plans to promptly address the failings of the energy market, identified by the recent Competitions and Markets Authority investigation.
However, it has serious reservations that the introduction of a marketing database accessible by other suppliers, will lead to consumers being bombarded with mail shots from suppliers, which may add to the confusion. The promotion of energy price comparison services is seen as a much better way of enabling customers to see the best deal available to them.
David Sheridan, founder of Onedox, commented, 'Getting the best deal for consumers is at the heart of Onedox and to do so, consumers need to have a clear picture of the overall market so they know who to switch to and when. Comparison web sites and the Onedox tariff monitoring service help them to do that, and we see this as far more attractive than distributing consumers' energy data to competing suppliers, with the inevitable result that they will be bombarded with mail shots and offers. In reality, this may add to the confusion and we encourage Ofgem to consider carefully how this system will achieve the objective of making consumers more informed and engaged.'