Ofgem highly critical of UK energy companies
Ofgem has this evening attacked UK energy companies suggesting that a lack of investment could see the UK short of energy supplies by 2020. In addition to the radical proposal to create a state owned company to acquire energy, which would then be distributed to UK energy users, Ofgem has finally admitted that the decade-old free-market approach in the energy industry is not working.
It looks as though the UK government will back Ofgem with legislation which would set minimum supply obligations for energy companies operating in the UK market. This would ensure no future shortage of energy to UK consumers or the business market and avoid the reduction in gas supplies we have seen in recent weeks. As we approach the next general election it seems almost certain there will be delays regarding the imminent introduction of a new regulations but hopefully the next government will pick up the baton.
It seems almost inevitable that the UK energy supply market is set for yet another revamp after the introduction of the "free market" just over a decade ago. Quite what impact of form this will take in the short to medium term remains to be seen but the recent lack of gas supply to the UK shocked many consumers, businesses and MPs.
Share this..
Related stories
Never look a gift horse in the mouth!
Since the turn of the year we have seen a mass of new sales initiatives on the high street but more and more we are seeing excellent offers and discounts available online and in magazines. While many people will bypass the various promotions and offers available in the thousands of magazines read in the UK there is no doubt there are some excellent deals available. In many cases it is simply a...
Read MoreWill UK consumers benefit from an energy price war?
Yesterday's news that British Gas will immediately reduce gas prices by 7% across the board was well received and could save UK consumers up to £55 year. While we have yet to see any response from the likes of E.ON and RWE npower it is almost certain they will respond with similar cuts to give them the best chance of retaining their customer base. However, will UK consumers really benefit from th...
Read MoreHousehold bills account for a quarter of spending
09/11/2013 A report from PricewaterhouseCoopers (PwC) has revealed that over a quarter of household spending goes on energy bills, household costs and water, twice as much as 50 years ago. This means we are now in the most trying time on record in terms of disposable income for households, as energy bills continue to rise and wages remain largely stagnant. The report highlights the fact that...
Read MoreIs the UK supermarket sector oversaturated?
The revelation that Asda, the number two supermarket chain in the UK, is looking to expand into smaller format stores and also looking at the potential of increasing its portfolio of non-food shops may well signal that the UK supermarket is oversaturated. The company confirmed that sales growth in the fourth quarter of 2009 was down from 5.6% in the previous quarter to 4.6%, which is the slowest g...
Read MoreRising cost of living squeezes family disposable income
It has been revealed that between 2007, when the credit crunch began, and 2008 the cost of living for a family in the UK increased from £459 a week to £471 a week. This is a 2.6% increase despite the fact that unemployment has been rising, incomes have been falling and more and more families are falling into the debt trap. So what is behind the rise in the cost of living in the UK? There is n...
Read More