Energy and Climate Change Committee: Ofgem ‘failing energy customers’
The cross-party Energy and Climate Change Committee found that government-set price caps to keep down energy-distribution costs were set far too high
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The energy regulator Ofgem has been strongly criticised for failing to ensure gas and electricity customers are getting the best value for money.
The cross-party Energy and Climate Change Committee has delved into the “network costs” for transporting gas and electricity from the grid to the home, which make up 23 per cent of an average household’s total energy bill.
It found that, while the government had introduced price caps in a bid to keep down energy-distribution costs, they were set far too high and required too little in the way of performance targets from the network operators.
Furthermore, a warning by Ofgem that it would take eight years to determine the effectiveness of the new system was not good enough, the committee concluded.
Energy distribution in the UK is dominated by a few regional providers that take power from the National Grid’s network. “Ofgem must get its act together and scrutinise their near-monopolies more effectively,” said committee chairman Tim Yeo.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments