What was the challenge?
A review performed by the Competition and Markets Authority (CMA) discovered customers who remain on the same energy tariff year after year typically end up paying more than those who switch - collectively, £1.4bn per year.
The CMA decided that one way to fix this is a service for those who have been on an expensive ‘standard variable’ tariff – a supplier’s basic energy offer – for over three years. The disengaged customer database will track all customers who are classed as ‘disengaged’ (i.e. been on a default or standard variable tariff for over 3 years) and deliver a range of services to help them get the best energy deal.
How are Moorhouse helping?
We lead the supplier engagement workstream, and are the key interface with the participating energy suppliers. Our role is to ensure suppliers are delivering the requirements to provide the customer data set out by Ofgem. This includes assurance of supplier development plans, and setting out regulatory escalations where necessary to incentivise compliance.
Our interactions with suppliers creates a continuous feedback loop between Ofgem and the suppliers. This verifies ongoing viability of the programme by assuring suppliers’ abilities to implement the operational changes required by the database.
What will the outcome be?
There are over 8 million ‘disengaged’ energy customers in the UK. Our role guides and holds suppliers to account for providing accurate data for these customers in a compliant manner. This is instrumental in the delivery of a successful energy customer database which will represent these individuals and give them access to a suite of digital services and offers.
The ultimate benefit will be better understood after service trials, but will include better deals and a decline in the £1.4bn per year premium for disengaged customers.
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