Do Ofgem possess a Big Stick??

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OK, silly title but what I am getting at is what is their very last resort punishment of an errant energy supplier? For instance, do they have ultimate power to actually revoke a licence? Or, are they like today's school headmasters? In my day (cue Monty python's Yorkshireman sketch :D) being sent to the heads office usually resulted in a lot of pain and a very red palm, now it's probably a 'jolly good ticking off' :rolleyes:

Anyone know? TIA!
Call me Carmine....

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  • spiro
    spiro Posts: 6,403 Forumite
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    OFGEM grant the licence, OFGEM can revoke the licence.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
  • The most Ofgem will ever do is threaten to revoke a suppliers licence.

    I always got the impression that they were there to protect the interests of the suppliers rather than the consumers. An example of this is when energywatch asked them to provide addtional protection for SME's regarding contractual issues. Ofgem's response was that they 'do not exercise jurisdiction over commercial issues between businesses'

    When the big six suppliers complained that the metering contracts they had agreed with National Grid were now restrictive because they could get a better deal elsewhere Ofgem agreed that National Grid had restricted competition and fined them £41.6 million!!!
  • 1carminestocky
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    The most Ofgem will ever do is threaten to revoke a suppliers licence.

    I always got the impression that they were there to protect the interests of the suppliers rather than the consumers. An example of this is when energywatch asked them to provide addtional protection for SME's regarding contractual issues. Ofgem's response was that they 'do not exercise jurisdiction over commercial issues between businesses'

    When the big six suppliers complained that the metering contracts they had agreed with National Grid were now restrictive because they could get a better deal elsewhere Ofgem agreed that National Grid had restricted competition and fined them £41.6 million!!!


    LOL! No idea if this is true or not but i did read a post from a person who claimed to have once worked for the FSA and he was of the opinion that the reason the FSA was so 'hands off' with the financial sector (and we all know where that has led us, don't we?) was because many of the FSA staff actually aspired to (and some in fact did end up) working in the banking industry and were afraid to rock the boat for fear of rejection when they applied. I believe Ofgem adopt a similar approach of light regulation of the energy industry....
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • Geoffo_M
    Geoffo_M Posts: 1,161 Forumite
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    LOL! No idea if this is true or not but i did read a post from a person who claimed to have once worked for the FSA and he was of the opinion that the reason the FSA was so 'hands off' with the financial sector (and we all know where that has led us, don't we?) was because many of the FSA staff actually aspired to (and some in fact did end up) working in the banking industry and were afraid to rock the boat for fear of rejection when they applied. I believe Ofgem adopt a similar approach of light regulation of the energy industry....

    I read a similar piece in that staff at all levels of the FSA earn about a fifth of their equivalent working in the banking/financial industry. This hardly motivates them to question those that one day, they hope, will be their eventual employers.
  • littletommytucker
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    LOL. Yes Ofgem can pull your license to trade gas and electricity. They can also revoke you from doing certain other things if they think the company is using unfair practice. E.G when they put a stop to Npower using field reps due to the huge amount of complaints that they were mis selling products... This only lasted a short while though, and they were back out on the streets after only a few weeks i think!
    Sunny in Southampton.
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