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‘Change is needed’: Ofgem chief calls on ministers to rethink energy price caps
(www.theguardian.com)
this post was submitted on 14 Aug 2023
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UK Politics
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This is the best summary I could come up with:
In the past two years, wholesale market prices reached record highs, pushing up the number of households living in fuel poverty to almost 7.5m and causing the collapse of almost 30 energy suppliers.
His call for a “more rigorous framework” to support households comes amid growing concern in some quarters that the energy price cap, legislated by the government in 2019, may now be doing the market more harm than good.
Unlike the price cap, the tariff would be set below the cost of supplying energy, so that households in fuel poverty could better afford their bill.
Ofgem has since tweaked the price cap to allow suppliers to recoup the losses sustained last year and remain attractive to investors in the future.
Today, millions more households are in fuel poverty, vulnerable bill payers have been forced on to prepayment meters, small businesses have fallen prey to predatory energy brokers, and Britain’s creaking electricity grids face decade-long queues of renewable energy projects waiting to connect to the power system.
Britain’s power grids, which are regulated by Ofgem, have warned renewable energy developers to expect a 10-to-15-year wait to connect their projects to the network.
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