MSE News: Ofgem warning over long-term energy costs

robertgmorrell wrote: »

Is Ofgem now the regulator on behalf of the energy industry?

Ofgem is, as it always was, the Office of the Gas and Electricity Markets.

Their role is quite varied and involves promoting competition within the energy markets as well as regulating the monopoly companies.
Other activities include ensuring sufficient supplies (as per this article) and curbing climate change (from the energy industry)

robertgmorrell wrote: »

Who's the consumer watchdog now?

Well, following the disbandonment of energywatch some years ago, that'll be consumer focus, who was said to be formed by merging the activities of energywatch and postwatch (quite a strange combination!)

However, seeing the demise of local post offices over the past couple of years, don't expect too much action from consumer focus over energy matters ... but the energy industry doesn't seem as bad as our postal service at present.

Energy already is unaffordable for many single person households. Electric heating is three times the price of gas heating, if you add in a low income or benefits it's all too easy to end up in fuel poverty. And not having elderly people or children in the household means we aren't vulnerable.

Cardew wrote: »

You would be hard put to pay more than £1,200 pa. So even if that figure rose by 25% in the next 10 years, that would mean paying £1500 pa.

And as a side note they don't say whether inflation is taken into account. If you assume an average of 2% inflation for 10 years, then that accounts for a 20% rise by itself!

And actually prices have roughly doubled over the last 10 years, so in fact they're saying that the next ten years will be half as bad as the last ten!

http://www.guardian.co.uk/business/2010/feb/03/energy-bills-unaffordable-system-overhaul

The Headline should read "OFGEM finally admits it has failed..."

Remember the days of the British Gas Corporation and its electrical counterpart, The Central Electricity Generating Board.

Everything was oh so simple...one number to ring,one concern responsible for gas,one for electric. Subsidised and special offers for consumers,a fully integrated gas and electric generation,transmission,and supply industry.

What do we have now? A massively fragmented industry,all sold off for corporate profits and many owned by non UK concerns. They cannot invest in infrastructure purely because they have no security,must prioritise shareholders and are hamstrung by OFGEM policy which dictates how much they can spend,reviewed periodically,and inevitably cut at every review. A recipe for disaster. Meanwhile in OFGEM quangoland,they help themselves to fat pay packets and fat pesnion allowances whilst holding directorships in other private companies,thus ensuring that they make even more money.

And what does OFGEM do? tell us they we face higher bills and that energy producers must invest....as if it all has nothing to do with OFGEM when,in fact,it is THEY who have brought about the whole situation.
They even lied to us. A few weeks ago in the bad weather,they told us how secure energy supply was despite several balancing alerts being issued. Now that crisis has passed,they admit that in fact there is a crisis.