Ofgem “needs to up its game” and become “more proactive” in protecting energy customers, Business, Energy and Industrial Strategy (BEIS) committee chair Rachel Reeves has warned.
Writing for Utility Week, Reeves branded the energy sector “broken”, and claimed that, in the past, Ofgem has been “too slow and too reluctant to use its powers to step in and protect the interests of customers, especially vulnerable customers”.
“We have called on Ofgem to be much faster and more proactive in using its extensive powers to protect consumers from overcharging in the future,” she said.
The committee has published its report on the government’s draft bill to cap on standard variable tariff (SVTs) bills last week, following a request by the business secretary to scrutinise the legislation before it is tabled in Parliament.
The report also backed the government’s decision in the draft price cap bill not to allow energy companies to appeal to the Competition and Markets Authority (CMA) against the regulator’s price controls decisions.
Reeves justified the committee’s support for the government’s draft legislation which she says comes as “millions of people are being penalised for the crime of being loyal to their provider”.