Energy body calls for reform of regulator

Industry body Energy UK has called for a radical reform of regulator Ofgem.

In its response to a Government review of the regulator, it said changes would enable a more streamlined and focused organisation “better equipped to carry out its main duties”.

“Energy UK argues that by becoming too big and bureaucratic, Ofgem has overseen a dramatic increase in red tape, reducing growth, and pushing up costs for customers – while a failure to assert its independence in the face of external pressure has fuelled short-term thinking, detracting from its main duties and the carrying out of effective, efficient regulation,” it said.

Energy UK’s chief executive, Dhara Vyas said: “Systemic regulatory failures have left customers on the hook for billions of extra costs and a massive increase in red tape is holding back investment at precisely the time we need it most.

“We strongly believe that a smaller, more expert Ofgem will be better equipped to carry out its role, facilitating both growth and lower customer bills, while energy retailers continue to be held to high standards by the CMA.”