Following the huge complaint from the Citizens advice which shows the customers who staked with their provider are losing a total of 4.1bn pound in a year.
According to the charity, the amount is equal to an average of 877 pounds per person.
It explained that impotent and aged people are disproportionately affected.
CMA (The Competition and Markets Authority) said it would now, “carefully consider the concerns” that had been raised by the Citizens.
FCA (Financial Conduct Authority) has declared at the same time that it will inspect whether the loyal customers have to pay very high for their car and home insurance.
The Chief Executive of the Citizens Advice Gillian Guy said, “ It is completely unacceptable that consumers are still being ripped off for being loyal to companies they rely on every single day. As a result of this super-complaint, the CMA should come up with concrete measures to end this systematic scam.”
According to the charity, when the latest price cap in the energy market would cut bills for the loyal customers by 75 pounds on average, its analysis report showed “excessive prices for loyal customers can be just as high – if not more so- in other markets.”
The director general of the association of Britishers Insures, Huw Evans said, “ In a competitive free market, where three out of four people shop around, there is no easy fix available, and these measures will take time to bed in.”
Andrew Bailey, the chief executive of FCA said, “ We expect firms to look after the interests of all customers and treat them fairly, whether they are new or long-standing.”
“It is important to get the balance right so that existing customers do not miss out on the benefits of competition and innovation, including when they purchase or renew their general insurance products. ”