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Wednesday, August 23, 2017

Legislation needed to tackle UK power price rises, regulator warns

The man in charge of policing Britain's energy sector admitted he is "concerned" at the slew of electricity and gas price rises this year but stressed that legislation would be required for the government to deliver on its promises of lower household bills.

Dermot Nolan, Chief Executive of Ofgem, has faced criticism for proposing a limited safeguard tariff that would extend protections to only about 2.2m "vulnerable" customers.

The move in July angered campaigners lobbying for a more extensive cap on energy prices following a pre-election pledge by prime minister Theresa May to cut annual bills by £100 for 17m UK families.

dermot nolan

In an interview with the Financial Times, Mr Nolan explained that Ofgem's decision to consult on the safeguard tariff only was "consistent" with the regulator's statutory objectives. Any wider intervention in the market was a "policy matter for government", he said.

His comments come after Greg Clark, Energy Secretary, wrote to the regulator following the election to advise that "Ofgem has powers available that would allow it to address the problems in the market we now see".

Read the full story at the Financial Times