Industry body Energy UK gave a guarded reception to the proposals published by the regulator this morning, saying some of the proposals could increase costs and more work was needed.
The plans include a “market maker obligation” on the big six suppliers, which has caused consternation in some quarters.
Energy UK chief executive Angela Knight said: “The Ofgem proposals are not just a ‘big six’ issue but apply to how the eight largest generators sell their energy onto the wholesale market. We need to consider carefully how the proposals join up as some have the potential to increase costs while others may well make it easier to see what is happening in the market.”
Richard Hall, head of energy regulation at watchdog Consumer Futures, called on the industry to “stop filibustering and get on with it”.
Ofgem first recognised a lack of liquidity as a barrier to the market for independent suppliers in 2005 and has been tackling the issue “urgently” since 2008.
Hall said: “The big players have been drinking in the last chance saloon for a long time here. They now need to knuckle down and work with Ofgem’s proposals.”