UK regulator: Energy firms 'failing consumers'
UK gas and electricity watchdog Ofgem has proposed a radical overhaul in energy practices following a review that found supply companies are “failing consumers.”
Among the reforms it proposes:
- A simplification of pricing
- Requiring the “Big Six” utilities to auction up to 20 per cent of their electricity generation output
- Tougher enforcement and more requirements to ensure companies play straight with consumers
- A reduction in unfair contracting
- Improved transparency
“Ofgem’s proposals should force open the electricity and gas markets to ensure the market works effectively for consumers,” said the agency’s chairman, Lord Mogg. “The energy supply companies have eight weeks in which to engage constructively with Ofgem’s proposals. If firms frustrate reforms they risk ending up at the Competition Commission (CC).”
Ofgem’s review found that competition is being stifled by a combination of tariff complexity, poor supplier behaviour and a lack of transparency.
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