Notice of reasons to issue directions under SLC 32A for Active Choice Collective Switch
Correspondence and other
Publication date
Industry sector
Supply and Retail Market
These directions were issued in response to the CMA’s findings of adverse effects on competition arising because of an overarching feature of weak customer response. Following a smaller scale Collective Switch trial at the beginning of 2018, this trial was designed to test whether a Collective Switch would prompt engagement from consumers who have not recently switched energy supplier or tariff. In particular, the Authority wanted to understand if the results of the first trial could be replicable to a larger scale. During the trial, a consumer-facing partner (appointed by the Authority) negotiated a collective switch tariff and provided personal projected savings to customers forming part of the trial. It also provided online and telephone routes for interested customers to start a switch, if they wished to do so. The direction provided a framework for the collaborative work of the Suppliers and the Authority in implementing the trial.