Ofgem must be scrapped, says union

Ofgem must be scrapped, says union

by Big Mac

Image: Thinkstock

The GMB union has called for Ofgem to be abolished.

It also calls for the government to take over as regulator accountable to parliament.

The union for energy workers’ call follows Ofgem’s proposals announced earlier this week.

The regulator agreed to adopt the Competition Markets Authority’s recommendation to establish a price cap to protect vulnerable customers from being overcharged for their gas and electricity.

Justin Bowden, GMB National Secretary for Energy said: “Ofgem should be abolished and the government itself should take over responsibility for regulating the industry so both are accountable to Parliament.

“Government cannot duck taking the decisions needed to keep the lights on and ensure the decarbonisation of the sector. Government should also have powers to cap prices and limit profit levels and, where necessary, to finance and run power stations.”

Ofgem insists it “is getting on with the job of protecting energy consumers by taking forward plans to implement the CMA’s reforms to the energy market”.

A spokesperson added: “Ofgem has a strong record in protecting customers which includes securing more than £230 million in fines and redress since 2010 as a result of enforcement against energy companies. Ofgem’s role and remit are a matter for Parliament.”