Ofgem statement on the Business, Energy and Industrial Strategy Committee's report on energy pricing and the future of the energy market
Responding to the Business, Energy and Industrial Strategy Committee's report, an Ofgem spokesperson said:
“We welcome the Committee’s scrutiny of energy market regulation following the once-in-a-generation global energy price shock.
“While the unprecedented rise in global gas prices would have resulted in market exits under almost any regulatory system, we have been clear and transparent about the fact that suppliers and Ofgem’s previous financial resilience regime were not robust enough. This contributed to some of the supplier failures since August 2021.
“No regulator can, or should, guarantee companies will not fail in a competitive market but we are working hard to reform the entire market, as well as closely scrutinising and holding individual energy suppliers to account, to further strengthen the regulatory regime. We’re pleased the committee has recognised the major scale and reach of these reforms which are already driving positive change across the market on behalf of customers.
“We commit to working closely with the committee, government and industry to make sure the balance of trade-offs across the board are carefully considered so that customers are prioritised throughout the current crisis and they have access to the government support they’re entitled to. We are also working with all parts of government and industry on the long-term solution to the energy crisis by moving us away from imports of expensive gas towards a more secure, reliable, home-grown energy system.”