There’s just ten days left to tell the government that energy regulator Ofgem is not fit for purpose. The deadline approaches just as Ofgem prepares to announce yet another hike to the energy price cap. That is, the regulator will hit household energy bills once again, all while lining the pockets of the profiteering energy companies.
So, campaign group Fuel Poverty Action is urging people to speak up.
The consultation: call out the spineless regulator
In December, the Labour Party government launched a consultation on the operations of energy regulator Ofgem.
The consultation states that:
Ofgem was established almost a quarter of a century ago as the independent regulator for gas and electricity markets in Great Britain. At the time, a system of independent regulation was established to drive the move towards competition in gas and electricity supply and replicate the benefits of competition in the monopoly gas and electricity networks. In recent years the energy sector has faced huge challenges. Against this backdrop, it is more important than ever that consumers are protected and that they receive good customer service. Government wants to see an energy market that delivers better outcomes for consumers and a regulator that drives up consumer standards. To address these challenges the government will undertake a review of Ofgem, with the aim of revisiting the role of the regulator and how it delivers to ensure that it can regulate to support an energy market where innovation and high standards help drive better products and services for consumers.
In short, the government has recognised that the energy regulator is failing in its core remit. Energy prices continue to soar – so Ofgem isn’t protecting consumers.
Nonetheless, the consultation provides an opportunity for people to show that the regulator isn’t working for them.
The government is closing the consultation on 28 February – so people need to act fast to get their responses in on time.
Fuel Poverty Action: Ofgem is failing us, now’s your chance to speak out
Fuel Poverty Action has launched a letter campaign, with a helpful template letter for people to use as a starting point.
The letter includes the following demands:
Make Ofgem a true consumer champion, holding suppliers to account for bad practice, ending the ‘revolving door’ of energy bosses making the decisions, and not making us foot the bill for firms going bust.
Reduce our bills to fair and affordable levels that meet people’s needs, removing protections that guarantee profits and bonuses for energy companies.
Make sure everyone automatically gets the best energy deal and customer service they need – and actually protect vulnerable people from profit-hungry suppliers.
However, to have as much impact as possible, the campaign group urges people to personalise their letters. Crucially, it suggests that respondents should explain how Ofgem’s failures to bring down soaring energy bills is impacting them.
You can use its letter tool to respond to the consultation here.
Alongside its letter campaign, the group has also put out a petition to accompany this. Since launching it on 12 February, it has already garnered more than 68,000 signatures. You can also add your name to this here.
What ‘regulator’? Ofgem in the pockets of profiteering energy companies
As the Canary has consistently pointed out, the spineless regulator has consistently acted in the interest of energy company shareholders. In August, Ofgem CEO Jonathan Brearley took to BBC Breakfast to defend the price hike as a way energy companies could:
recover fair costs and a small profit
This is a so-called ‘regulator’ that just last year allowed energy companies to continue the disgraceful practice of forcing customers onto prepayment meters. That is, it gave them the go-ahead to force their way into people’s homes and install these. Moreover, as the Canary’s Steve Topple pointed out, it’s “wafer-thin” criteria for who counts as vulnerable, leaves many people out too.
Then there’s the cruel standing charges. Energy companies set and charge this cost to consumers each day. Crucially, energy suppliers will charge this, even when people are not using any energy.
In 2024, tens of thousands of people called on Ofgem to abolish this. However, the regulator isn’t remotely interested in scrapping it.
Energy price cap rise incoming…what’s even the point of Ofgem?
What’s more, the consultation deadline is set to fall just days after Ofgem’s is expected to make the next energy price cap announcement – on 25 February.
As the Independent reported:
forecasts show the typical energy bill could soon rise by over £100 a year.
Whitehall sources have indicated that they expect bills in most UK regions to increase by around £9 a month over next three months
In particular, it said that:
Treasury sources have indicated that the new annual cap will be £1,846, up £108 (6.2 per cent) from the current level. This would put it up £156 from the same time last year, and to the highest it has been since January 2024.
This would be an increase on the same period from last year. Moreover, energy bills would still be way above pre-pandemic prices.
There couldn’t be more timely evidence that Ofgem continues to so very shamefully let the public down.
Time to ‘put their feet to the fire’
Lead Campaigner at Fuel Poverty Action Stuart Bretherton told the Canary why it’s vital as many people as possible take Ofgem to task in the consultation:
Regulation is supposed to protect us from being ripped off. But Ofgem has long been putting the interests of private energy firms above the needs of ordinary people. No wonder there’s an energy price crisis.
We’ve seen bumper bonuses for bosses, shareholders making more than a pretty penny, and a revolving door that sees energy bosses having a huge influence on policy.
Ofgem ignored tens of thousands of people calling for cruel standing charges to be scrapped. They’ve overseen huge payouts for shareholders while our bills have gone up 65% since 2020. It’s high time they worked for us.
We’ve seen it with water, and we’re seeing it with energy: when profits come first, it means high bills and abysmal service for us.
Now that Ofgem is under review, we have an opportunity to put their feet to the fire. Add your name to the petition and take a minute to send a letter to demand that they start putting people before private profit.
So, there’s just over a week to get involved in Fuel Poverty Action’s letter campaign and respond to the consultation.
However, the Labour government has a prolific track record capitulating to the whims of corporate capitalists. Whether it will actually make the regulator serve the needs of the public, remains to be seen.
Featured image via the Canary
