Energy providers exploit loophole to hide best prices from customer . . . thanks to government watchdog policy

ENERGY providers are exploiting a fresh loophole to keep the best prices from loyal customers – incredibly, only made possible thanks to a government watchdog.

SSE has just launched a deal for new gas and electricity customers at £782 a year available through most price comparison websites.

But when their current customers search for a deal on the same sites this offer will not come up - and they must pay at least £948.

Previously the cheaper deal would have shown up on price comparison website searches.

But after a two-year probe into the industry published in June this year the Competitions and Markets Authority recommended providers no longer need to show “the whole market”.

This means energy companies can keep the best deals hidden from loyal customers who have been with them for years.

The SSE deal for new customers was launched on August 4 and is still available.

Its standard variable tariff - its default package - is currently £1,056, so £274 more expensive than its cheap offer for new customers.

Earlier this year SSE’s fellow Big Six providers British Gas and EDF, launched similar deals.

They have since expired, but details of the deals have never previously emerged.

British Gas launched an offer in June, through uSwitch, offering a dual fuel deal for new customers of £749, around £270 less than the best price for existing customers.

EDF had an offer in May through Moneysupermarket, offering new customers a deal of £724, around £116 less than the best its current customers could get.

Ed Kamm, the UK boss of First Utility, the biggest of the independent suppliers, said: “Once again, energy giants are offering great deals to new customers while reverting to old habits and hiding them from the most loyal ones.

“We’re now seeing exactly how the CMA remedies will continue to fuel a tale of two markets - helping those who already shop around and doing little or nothing to help those who continue to be taken advantage of by the Big Six. ”

The CMA said it its report it recommended the move to increase competition.

But last month Angus Brendan MacNeil, chair of the energy and climate change committee, wrote about his concerns to the new business secretary Greg Clark.

He added that although “trust is gradually returning” to the energy market “this remedy risks turning that tide and eroding trust afresh”.

A SSE spokeswoman said: “In line with the CMA remedies, SSE is trialling an introductory tariff for new customers as a way to test and learn how best to engage customers in the market.

“As part of this test phase, we will also look into trialling offers for existing customers to ensure we’re offering the best possible service and value to all customers.”

EDF said the CMA “remedies are aimed at increasing competition between energy suppliers and also between price comparison websites to attract customers who have not made active choices in the past”.

It added: “We have responded by starting to test the effectiveness of different ways of reaching new customers.”

Alex Neill, Which? Director of Policy and Campaigns, said last night in response to the better deals for new customers: “Loyalty doesn’t always pay.

“We know some consumers could save up to a massive £400 a year if they switched so shop around.”