Energy watchdog says Government must regulate to cap household bills
The head of energy regulator Ofgem has said the Government must bring forward new legislation if it wants to cap household energy bills.
Ofgem's Dermot Nolan said ministers would need to legislate to cap billsSome consumers have been hit by rises as large as 15% this year, although British Gas has blamed some of the increases on policy costs such as subsidising renewable energy and installing digital smart meters.
The watchdog has so far proposed only a "safeguard tariff", aimed at protecting 2.2m of the most vulnerable customers from rising bills.
Ofgem's chief executive Dermot Nolan told the Financial Times that any sweeping intervention in the energy market was not in his remit and would be a "policy matter for government".
That contradicts a claim from Business Secretary Greg Clark, who wrote to Mr Nolan earlier this year saying that Ofgem "has powers available" to correct problems in the market.
Mr Nolan said a new law would be the "most effective way" of capping prices, and added that the regulator "would absolutely do our best to implement such a cap as effectively and efficiently as possible".
He warned that trying to cap prices under the current rules would leave a "substantive appeal route" for the energy companies.
At the same time Mr Nolan said he was worried about the impact on consumers of rising bills.
“I see a situation where wholesale costs . . . are much the same as three years ago and I’m concerned about some of the price rises we’ve seen this year,” he said.
Roy
12:01 on 17th August 2017
AN UPDATE ON U.K.FRACKING PROBLEMS******* Just this to say here to the, Tory Govt member when will fracking start in your rich areas, Of the U.K.? Not just the poor areas of this country that you Tory Govt, Fail to let us residences “have a say on the matter now you just, Over tune our wishers and that of our elected County Councils . (Just for cash) So Ms May when are you going to allow fracking, In your rich Tory party areas? As you all in Govt plus your Tory rich voter will be getting use of our gas, In our areas but without the danger of being poisoned, Like we in the poor areas will be, When fracking start up right and our water table is use to frack for gas. “I hope you Ms May have informed! Mr Hunt of the need for more staff to handle the poisoning crises, That will be coming his way and that of the N.H.S. staff. When all out fracking start and rule go out the window on safty, At the drill site just to make profits for you Tory Govt + The frack firms as you all will share in the profits, Not any of us residents that are being” Poisoned will get anything out of fracking only death! In addition, to inform you Ms May plus Tory voters our gas bill will, Not go down on "my investigation they will increase, By £8.00 +vat per household, On top of the prices increase, At the time, we start using the fracked gas. (If we use our own fracked gas that is) (Therefore the fracked gas will be NO! cheaper) Than imported gas, in fact it will cost more to keep, It off shore to pump back too us for uses. Alternatively, is it Tory Govt intension as “I beleave it is to sell off, Our gas to over “country but still import our gas. (In addition, “charge us more?) “I know the latter in this comment will not concern you Tory Govt members, As you will be putting taxes on the fracking firms to store our gas, Of shore in U.K. waters, Therefore, you can all pocket the differences in income. You all make off the backs off poor people plus the poorer areas, In the U.K. Remember voters you reap what you saw under Tory rule NOW! Which is nothing at all only poverty and ill rest NOW in the U.K.