News has emerged that five former industry regulators have urged investigators to look into Ofgem, the energy watchdog, over claims that they are to blame for reduced competition and rising energy prices.
The Competition and Markets Authority (CMA) is currently investigating the energy sector after Ofgem said that households are paying too much for gas and electricity. The investigation, which will last 18-months, will look into regulations implemented by Ofgem in 2008 which former industry regulators claim are to blame for rising energy prices and reduced competition.
According to former industry regulators there are two primary regulations that have led to this – the prevention of discriminating against customers inherited from pre-privatisation days, and offering cheaper prices to new customers.
Ofgem has been quick to reject the blame for high energy bills, as reported by Sky News. In a statement, the watchdog said: “Many of the current problems with retail competition in the energy market were showing before 2008 and the regulatory and policy environment has changed significantly since then.
“Our reforms to make the market simpler, fairer and clearer for consumers have been in place since earlier this year with the aim of tackling some of the issues affecting competition.”
It of course remains to be seen how this story will play out. We will update you with any further news.