What use OFGEM?

What use OFGEM?

What useful purpose does OFGEM or Consumer Direct serve for the consumer, Gilbert and Sullivan could have produced a world beating operetta about them title The Toothless Tigers springs to mind. You only have to look at the number if disaffected consumers which is not measured in tens or hundreds more like tens of thousands, who are like in this interview on BBC news, are resigned to the fact that there is no control whatsoever over these modern day highwaymen. A political observer stated most ex-MP's could finish up in the city - how many working for quangos finish up working for the companies they were supposed to police

My committee warned the government and Ofgem last year that the energy markets were not working properly... this is further compelling evidence that that is the case

Peter Luff MP, chairman of the Business and Enterprise Committee

The big six energy suppliers have told the regulator Ofgem that there is little chance of any further cuts in their tariffs this coming year.

They were responding to calls from Ofgem for them to pass on more of the recent falls in wholesale energy costs.
However, while Ofgem had requested that the companies do so, it has no power to enforce any tariff cuts.

Peter Luff MP, chairman of the Business and Enterprise Committee, said energy markets were "not working properly".
Ofgem estimates lower costs will boost suppliers' gross profit on each dual-fuel customer by £60 this year.
The firms say other costs which make up 40% of bills are rising steeply. Consumer Focus said the industry's responses were a "chorus of excuse and self-justification".
"In spite of increased margins and lower wholesale gas prices, there is the inevitable talk of higher domestic bills," said Robert Hammond of Consumer Focus.

Response

In August, Ofgem wrote to the chief executives of each of the big six energy firms, urging them to "respond" to falling wholesale prices as some poorer customers would be suffering hardship from high prices during the winter.
Depending on how good suppliers were at buying their energy in advance, the regulator says their wholesale electricity costs have fallen in the past six months by more than £7 per megawatt hour, equivalent to £29 per customer's annual bill.

Meanwhile gas wholesale costs to the energy companies have dropped by an average of 10p per therm, or £59 for each customer's bill.
A spokesman for Ofgem stressed that the regulator did not have the power to force energy firms to trim prices, and instead that it could only act against energy companies if it finds evidence that they have acted anti-competitively.
He added that while Ofgem wanted the energy firms to trim their bills, there was no suggestion that the current high prices suggested anti-competitive behaviour

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