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Energy firms 'ripping off' loyal customers, probe finds

Customers who stay loyal to their energy supplier for years are being ripped off by energy firms who routinely charge them up to £234 more a year than those who switch, an investigation has found.

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Energy firms 'ripping off' loyal customers, probe finds

A competition probe into the energy sector has found that 95% of dual fuel customers who stay loyal to the Big Six firms are routinely charged up to £234 more a year than those who switch.

The Competition and Markets Authority (CMA) revealed part of its findings into pricing in the sector today, after an official inquiry began last year following a referral by Ofgem in light of soaring household bills and increased public distrust.

The Competition and Markets Authority (CMA) is due to reveal part of its findings today Credit: PA

The CMA's full provisional findings will be published in May, but a summary of evidence gathered to date was released today.

The update revealed that the vast majority of customers who receive all their energy from one supplier could have saved as much as £234 a year between 2011 and 2014 if they had switched firms.

This affects the some 40 to 50 per cent of people who have stuck with the same supplier for more than a decade.

Evidence from the probe also supports the suggestion that the so-called Big Six companies "segment the market and price discriminate".

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