Ofgem propose radical overhaul of retail energy market

22.06.11

The regulatory body for the energy sector, Ofgem, is to press on with an overhaul of the retail energy market.

Its plan comes in the wake of rising energy prices, and is backed by consumers, watchdogs and energy suppliers outside the traditional Big Six.

Ofgem’s Chief Executive Alistair Buchanan said:

“In a period of rising energy prices energy suppliers have to transform the way they deal with consumers.

“The penny has dropped with the Big Six and they are ready to take part constructively in the debate.

“We will also pursue breaking up the stranglehold of the Big Six on the electricity market to encourage more firms to enter the energy market and increase the competitive pressure on the Big Six.”

Mike O’Connor, Chief Executive of Consumer Focus said:

“This is a good sign. Ofgem has listened to consumers and will press on with the task of reforming our energy markets. But, if competitive pressure cannot deliver good value and fair treatment, and if suppliers talk co-operation but don’t deliver, then we will continue to press for a major market review by the Competition Commission.

“While we welcome these measure, what consumers need are material improvements to the energy market. Ofgem needs to have some clear ideas of what success would look like.”

Energy Secretary Chris Huhne said:

“I wholeheartedly welcome the regulator Ofgem’s announcements today. With households and businesses facing rising energy prices, I want to see more clarity in billing to help consumers shop around and switch to the best deal. We are also working with Ofgem to sweep away the barriers to new companies entering the energy market so consumers can benefit from greater competition.”

To read Ofgem's full press release, click here.