Top Stories
Britain seeks to beef up Ofgem energy regulator’s powers
Global Banking & Finance Review®
Company
LONDON (Reuters) – Britain set out plans on Thursday to strengthen its energy regulator Ofgem to help facilitate the country’s shift towards a decarbonised energy system by 2030 and better protect consumers against bad treatment by suppliers.
LONDON (Reuters) – Britain set out plans on Thursday to strengthen its energy regulator Ofgem to help facilitate the country’s shift towards a decarbonised energy system by 2030 and better protect consumers against bad treatment by suppliers.
The Labour government, elected in July, has set out plans to radically overhaul how electricity is generated in Britain, shifting almost entirely away from fossil fuels in favour of green energy sources.
Meeting that goal is seen as a huge challenge that will require massive private and public investment as well as big changes to the energy grid, which Ofgem has a role in approving.
Launching a consultation on new powers for the regulator, the energy department said the review would look at how to improve Ofgem’s current involvement in regulating energy infrastructure to better support private investment.
It did not set out those proposed reforms in detail in a statement announcing the consultation.
Ofgem has faced heavy criticism in recent years, most notably after dozens of energy suppliers failed due to spiking wholesale gas costs in 2022, forcing some customers to pay extra charges.
The government said it wanted to give the regulator better powers to force suppliers to treat customers more fairly and stamp out bad practices which have damaged public trust in the industry.
The consultation launch is the first step in the reform process. It called for input from energy users, consumer groups and industry and will close at the end of February.
(Reporting by William James; Editing by Emelia Sithole-Matarise)
Ofgem is the Office of Gas and Electricity Markets, the regulator for the electricity and gas markets in Great Britain, responsible for protecting consumers and promoting competition.
Decarbonisation refers to the process of reducing carbon dioxide emissions associated with energy production and consumption, often by transitioning to renewable energy sources.
Energy suppliers are companies that provide electricity and gas to consumers and businesses, playing a key role in the energy market.
A regulatory framework is a set of rules, guidelines, and practices established by authorities to govern the operations of industries, ensuring compliance and protecting stakeholders.
Explore more articles in the Top Stories category
