Sale of Npower subsidiaries a boost to competition
RWE Npower’s sale of two subsidiaries to energy and telephone company Telecom Plus was a badly needed boost to competition in the UK energy market. The deal had the potential to lead to more competitive business electricity prices and household energy prices.
RWE Npower has agreed the sale of its Electricity Comparison Plus and Gas Plus subsidiaries to Telecom Plus, which owns the Utility Warehouse brand, for £218 million. The deal is the result of new rules imposed by energy regulator OFGEM that limit the number of tariffs suppliers can offer domestic customers to four.
But this should be the beginning of a wider process. There is much more OFGEM can do to free up the financial and regulatory obstacles that currently deter new players from entering the UK energy market.
More competition and better choice for consumers is the key to more competitive energy domestic and business electricity prices for customers.
NPower’s deal has lead to a little more competition within the business and domestic energy markets
The RWE Npower deal, which will see it offload 770,000 customer accounts, is expected to be completed by early January 2014 and will not result in any change to customer service or contracts.
Although the creation of a significant new player in the UK market was welcome, consumers needed to remain vigilant when managing their energy use and choosing a supplier.
The best way for consumers to keep their energy bills under control is to regularly monitor the tariffs suppliers are offering and to carefully consider opting for a fixed tariff while prices are rising.
Consumers can enjoy enormous peace of mind by fixing prices now because there will be no nasty surprises for the duration of the fixed-term deal if energy prices do rise further. Alternatively, consumers can keep switching suppliers to take advantage of the best deals on the market. This will in turn drive down prices as the suppliers have to react to remain competitive and attract new customers.
Making the decision might seem daunting but impartial price comparison services are here to help consumers through the process. Switching suppliers is actually very simple and at Energy Advice Line we are also there to help long after consumers have signed up to a deal.
We can deal with suppliers on their behalf of they have queries about bills, overcharging or other issues. Plus, our service is free to consumers so there is absolutely nothing to lose.
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