What is the point/remit of Ofgem?

[Deleted User]

Is there one? If so, do you think it is fulfilling it? 

Gerry1

It's a 'lavender' organisation, it makes everything seem good and wholesome by masking nasty smells....

youravinalarrrf

Ofgem's only function and purpose is to act as somewhere Boris can blame when the !!!!!! hits the fan.

Unfortunately Ofgem still see themselves as civil servants firmly stuck in the 1940's and see consumers as the filthy working classes to be looked down upon.

QrizB

Controversial view:

Ofgem is a governmental body and does what the UK Government asks it to do, no more and no less.

https://en.wikipedia.org/wiki/Office_of_Gas_and_Electricity_Markets

[Deleted User]

Ah yes, the fount of all truth and knowledge, Wiki...    Nice bit of copying and pasting there.

Counter opinion:

So the Government has seemingly asked Ofgem to destroy the energy industry, and make it a laughing stock, and paragon of exploitation and maladministration. While simultaneously making a pig's ear of the granting of supplier licences to obviously inappropriate parties, oversight and now crisis management? Why would it do that? 

QrizB

Deleted_User said:

Ah yes, the fount of all truth and knowledge, Wiki...    Nice bit of copying and pasting there.

The only thing I copied and pasted was the link. I find it's more reliable than making them up on the fly. You are obviously entitled to think differently.

Would you prefer their own version of things?
https://www.ofgem.gov.uk/about-us/our-role-and-responsibilities

Deleted_User said:

Counter opinion:
So the Government has seemingly asked Ofgem to destroy the energy industry, and make it a laughing stock, and paragon of exploitation and maladministration. While simultaneously making a pig's ear of the granting of supplier licences to obviously inappropriate parties, oversight and now crisis management? Why would it do that?

Government: We want more competition in retail energy. Make it easer for new entrants to join the market. And set a price cap so the old companies can't overcharge the large number of customers who don't want to switch.

Ofgem: Are you sure about that?

Government: Yes, it's what voters want.

Ofgem: OK ...

[Deleted User]

But it's patently not what the voters are getting, and we are very nearly back to a cartel situation, dominated by multinational corporations. Is that competition?

The Government says a lot of things, such as levelling up, a Northern transport hub, and transparency with no corruption or raw capitalism, and climate policy. How is that going? Don't be so naive. 

[Deleted User]

In my opinion (note the term 'opinion') Ofgem is no more, and no less, (to use your expression) than a buck passing hub, and staging post for relaying issues on to somewhere else, such as the Ombudsman or the courts or the suppliers or Citizens Advice, or its in-house library of handy hints or Tom Cobley and ultimately back to the mug customer.

Have you noticed that it actually has no authority or responsibility at all really, and is certainly never to blame for anything. Out of interest, do you happen to know what Ofgem's budget is, and how much the customers and electorate pays for this 'service'?

In short Ofgem is about as effective as the SFO and FCA. 

[Deleted User]

@Deleted_User As they say, 'You can't shine !!!!!!.' Although you can roll it in glitter.   

tux900

Deleted_User said:

Is there one? If so, do you think it is fulfilling it? 

Yeah definitely! They're responsible for sending the formal letters out announcing when suppliers go bust. ;-)

[Deleted User]

This recent Ofgem paper may be of interest:

https://www.ofgem.gov.uk/sites/default/files/docs/2021/03/cmp2_consultation_final.pdf

When you read that report, you can see that Ofgem was aware of the potential car crash about to happen but decided to start another consultation. It was built into the system that suppliers could risk their customers money instead of their own.

2.9. However, as suppliers gain a working capital benefit from credit balances, it means they have access to capital they would otherwise need to seek commercially. This can enable suppliers to take risks like offering loss-making tariffs, particularly if they collect more credit balances than they need to serve their customers (see “surplus credit balances” below). Without the free sources of working capital there would be a check on this as investors and banks would only allow suppliers to pursue such a strategy if they were comfortable with the risk. Currently, suppliers can potentially avoid these types of constraints by using their customers’ money rather than shareholders’ or other investors’. 

**Thanks to @Cardew and @wakeupalarm for posting this on another thread (suppliers creaming off credit balances)