CMA issues legal directions to energy firm Daligas

6 July 2018 (Last Updated July 6th, 2018 11:42)

UK’s Competition and Markets Authority (CMA) has issued legal directions to energy company Daligas saying that it has failed to provide pricing information to small business customers.

UK’s Competition and Markets Authority (CMA) has issued legal directions to energy company Daligas, saying that it has failed to provide pricing information to small business customers.

Daligas provides energy to small businesses (SMEs) and domestic customers.

As per a previous CMA Order, all energy companies supplying microbusinesses were required to provide an online tool to enable SMEs access accurate energy quotes to compare with other firms.

The authority issued the directions following the failure of Daligas to respond despite several reminders.

"By not allowing companies to access this information in a timely way, Daligas is breaching its legal obligations."

CMA Markets and Mergers executive director Andrea Gomes da Silva said: “Small businesses are vitally important to the UK economy. As a result of the CMA’s investigation into the energy sector, these companies have a right to be given accurate pricing information so they can compare their energy deal with other suppliers and potentially switch to a better offer.

“By not allowing companies to access this information in a timely way, Daligas is breaching its legal obligations, which is why we have issued these formal directions.

“The company must now comply within the next month, or we will take it to court. We also want to remind other companies that we can and will take action if they fail to comply with CMA orders.”

Daligas is also in breach of one of regulator Ofgem’s licensing conditions as it failed to provide this information.

Ofgem conduct and enforcement director Anthony Pygram said that small business customers will have the correct information to compare suppliers and choose the right one for them with the help of an online tool.

“When a supplier does not comply with their licence obligations, Ofgem has the powers by statute to impose financial penalties and for suppliers to accept commitments or undertakings relating to future conduct or arrangements.”

CMA noted that more than 20 energy firms that offer energy to SMEs are already complying with the Order, issued as part of its investigation into the energy market.