Flowgroup plc Flowgroup welcomes CMA's energy competition report
27 Giugno 2016 - 10:09AM
RNS Non-Regulatory
TIDMFLOW
Flowgroup plc
27 June 2016
RNS REACH
27 June 2016
Flowgroup plc
("Flowgroup" or the "Company")
Flowgroup welcomes CMA's final report into competition in the
energy market
Flowgroup plc (AIM: FLOW), which provides innovative energy
technologies, energy supply and energy services, welcomes the final
report of the Competition and Markets Authority (CMA) investigation
into the competitiveness of the energy market and believes that the
suggested remedies are positive for its energy business, Flow
Energy.
We believe that the market is already competitive, due almost
exclusively to the efforts of challenger suppliers like Flow Energy
providing lower prices and better service than the Big Six.
However, we do believe that the key changes suggested by the CMA
would achieve their aim of encouraging even more customers to
switch supplier, an effect that can only be positive for the
continuing growth of our business. The key changes as we see them
are:
-- The creation of an Ofgem-controlled database of customers who
have been stuck on expensive standard variable tariffs for more
than three years, for other suppliers to market to. While this will
need to be carefully implemented to ensure customers don't receive
large quantities of direct marketing, it may allow challenger
suppliers the opportunity to directly reach customers who have
passively stayed with the Big Six.
-- The lifting of the four tariff rule to allow more innovation.
This is particularly beneficial for our Energy for Life strategy
since it allows us the flexibility to create a range of tariffs
that bundle in our innovative microCHP, smart heating and connected
home products, delivering value to customers in new ways.
-- Giving online price comparison sites more flexibility to
innovate around exclusive deals, rebated commission and the way in
which they display comparison information to the customer. We
believe the differentiated elements of Flow Energy's offer - our
Which? Recommended Provider status and our Energy for Life offer -
will allow us to continue to stand out in the competitive price
comparison space and that our focus on innovation will allow us to
use these changes to our maximum advantage.
We also welcome the CMA's recommendation to accelerate the
introduction of half hourly settlement in the domestic electricity
market. This reform is key to providing cost reflective tariffs and
rewarding cost avoidance and will allow Flow to innovate further
and extract maximum value from the benefits its microCHP technology
and smart heating range deliver to customers.
We have engaged with the CMA since the start of the
investigation and we will continue to work with them through the
next phase to ensure that the implementation of the recommended
changes is calibrated to benefit challenger suppliers as much as
possible.
Andrew Beasley, Managing Director of Flow Energy, commented: "We
welcome the CMA findings and believe the implementation of their
suggested changes will play their part in the continuing growth of
our business. However, fundamentally, we believe that the best way
to encourage switching is for challenger suppliers like Flow Energy
to keep providing competitive pricing and outstanding service. We
must also continue to expand the idea of what an energy company can
be, by offering a broader range of products and services to
customers, so they have genuine choice and can find genuine value.
We hope that the public will increasingly see this after the CMA's
findings and actions have thrown a spotlight on challenger
suppliers like Flow Energy and their pivotal role in creating
competition and delivering value in the domestic energy
market."
Flowgroup plc www.flowgroup.uk.com
Andrew Beasley, Managing Director, Flow Energy Tel: +44 (0)20 3817
3637
Walbrook PR Ltd Tel: +44 (0)20 7933 8780 or
flowgroup@walbrookpr.com
Paul McManus (Media Relations) Mob: 07980 541 893
This information is provided by RNS
The company news service from the London Stock Exchange
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