Electricity regulator criticised for ‘failing’ customers

Energy regulator Ofgem has come under attack for ‘failing’ to look after the interests of customers in the domestic electricity market.

A new report from the House of Commons’ public accounts committee (PAC) has criticised Ofgem for not doing enough to ensure that customers can avail of the best methods of paying for their electricity.

It has been calculated that that domestic consumers could make yearly savings of over £650 million - 13 per cent of the yearly bill - if they switched suppliers. However, the report raises concerns that Ofgem is not doing enough to enable customers to make the switch – with complaints about the confusing hard-sell tactics utilised by electricity companies averaging over 50 per week.

The criticisms come as Ofgem proposes to remove ‘price caps’ from the electricity sector in April of this year – a move which has been opposed by MPs, who have called on the regulator to promote greater competition in the market.

Edward Leigh, MP and chairman of PAC, commented: “Without a maths degree, it is very difficult for consumers to determine which company is best for them. Ofgem must urgently find a way for people to be provided with clear information to use as a basis for making decisions.

“Without this, domestic electricity competition can never fully succeed.” (CL)