Britain’s regulatory bodies have come together to devise a comprehensive plan to safeguard consumers from the exploitation of companies during the ongoing cost of living crisis. The discussion between the Chancellor and the regulatory heads focused on ensuring fair treatment of consumers by putting an end to greedflation, where companies take advantage of rampant inflation to raise prices and increase profits.
Although these measures may not provide direct financial relief to Britons facing steep increases in household expenses alongside soaring mortgage costs due to higher interest rates, they do aim to address consumer concerns. In a meeting held at Downing Street, the heads of the Competition and Markets Authority (CMA), Financial Conduct Authority (FCA), Ofcom, Ofgem, and Ofwat committed to expediting ongoing work in their respective fields.
The CMA will shed light on the profit margins of supermarkets and fuel retailers through an upcoming study, while also examining grocery pricing practices. Retailers will be scrutinized for their use of misleading price tags. Additionally, the CMA will update its inquiry into the rental and housebuilding sector next month.
Ofcom, the communications regulator, has agreed to pressure broadband and mobile suppliers who do not offer social tariffs, which benefit vulnerable customers, to provide these deals. They will also waive fees for customers wanting to switch to a social tariff. By the end of the year, Ofcom will publish a review of “in-contract prices” to ensure transparency for consumers.
The largest mobile and broadband companies in the UK faced criticism for fueling greedflation with their recent significant price hikes. To support customers in paying bills and repaying debts, Ofwat, the water industry regulator, will take action against water companies that fail to offer sufficient customer support. In discussions with the government and Thames Water, Ofwat will outline the improvements expected from companies with insufficient customer support.
In terms of energy suppliers, Ofgem will closely monitor their practices to ensure falling wholesale prices are passed on to consumers. Furthermore, Ofgem will conduct a review of the business energy market during the summer and will take action against suppliers who have overcharged business customers.
The FCA has pledged to investigate how banks and building societies implement changes in interest rates. Following a meeting with lenders, the Chancellor successfully secured a 12-month grace period for struggling mortgage holders before repossession proceedings begin.
Overall, the Chancellor, Jeremy Hunt, expressed satisfaction with the agreement reached with regulators to promptly address areas requiring support for fair treatment of consumers. The meeting included representatives from Ofcom, Ofgem, Ofwat, CMA, and the FCA, namely Melanie Dawes, Jonathan Brearley, David Black, Sarah Cardell, and Nikhil Rathi, respectively.
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