Ofgem is introducing new measures which may help to reduce bills for some energy consumers.
Ofgem makes changes to price tariffs options
Ofgem will introduce temporary measures from April 2022 which make all energy company price tariffs available to all customers. The result will be that existing customers and new customers will be able to get exactly the same deals. There will no longer be any preferential treatment for new energy customers.
The regulator said that the measures should help to protect energy consumers who face further rises in prices from April 2022, after it raised its cap on the most widely used energy tariffs by 54%. Suppliers must offer existing customers the same energy tariffs as new customers.
These measures will come into effect from April 2022 with the intention they will fall away this Autumn (end September) when Ofgem expects the risks they are protecting consumers from will be adequately addressed by proposed reforms to the price cap. The exact nature of these future price cap changes is not yet clear.
Is Ofgem doing enough to reduce bills for consumers?
The measures do not go far enough. Similar measures were put into place by the Financial Conduct Authority (FCA) for the insurance market in January of this year.
It is hard to understand why other regulators were not already following suit with the FCA’s action in the retail insurance market. These measures should have been in place and made permanent long ago. Ofgem says it will be watching the situation to see if the measures need to remain in place. Of course they should stay in place! Directors of energy firms are still making huge profits at the expense of consumers and this is simply not acceptable!
UK energy prices compared with France
France energy prices are increasing by just 4%, compared with 54% in the UK because of better regulation and a Government that is more willing to intervene in the market.
You have to ask, if the rise in energy prices is a global problem, then why it is not affecting us equally? Ofgem needs to do more to protect consumers, such as capping energy shareholders’ dividends!
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