Do utility contracts limit consumer choice

[Shadowcat]

Do you think that all these contracts nowadays limit consumer choice? Could it be classed as anti-competitive to restrict free movement for consumers in, say, utility markets? The Competition Act states that contracts can be be classed as restrictive if they have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom.

So, would these companies have to be more competitive without contracts or would it lead to a cartel? It's so frustrating when you hear about lower prices but can't do anything about moving without paying a fee, surely it should be a free market for consumers.

Interested in your thoughts.


Shadowcat.

[enaid]

Re: Do utility contracts limit consumer choice

I think the contracts a very unfair as an instance when thousands signed up with NPower and were ripped off not soon after they signed you still had to adhere to the contract before you could switch.
I think once the business does not stick to their side then you should be free to change suppliers.

[Shadowcat]

Re: Do utility contracts limit consumer choice

Thanks enaid. Once someone takes one of these to court I think they could be found to be too restrictive. Its disgraceful that the only way to get out of using a supplier is to pay them, no freedom of choice in that.

If there are any reasons they're a good idea and I've missed it I'm sure our LB's will let me know. If the general consesus is that they're bad for the consumer I'll write to a few people to start a complaint.


Shadowcat.

[strangewayofsavin]

Re: Do utility contracts limit consumer choice

the problem is, as a cartel, the complaint can at present, only be made by an authority like the OFT, and the OFT only work on guide lines, and when you have to take into consideration the leniency policy, which means if they come clean before the court case then a lesser sentance is given, we at present are subject to ineffecient ruling, which as of 2nd Feb this year is about to change.