The GMB union are not happy with Ofgem and are calling for the government to take over. This would mean completely scrapping Ofgem and giving full control to the ones who run the country. This energy industry is supposed to be regulated to make sure it’s a fair market for everyone to compete in. Although that may sound nice and cheerful, in reality it’s often just not to case. We often hear new suppliers enter the market claiming to be different, more ethical, more efficient and a year or two later we see them doing the exact same ‘bad practices’ as others.
The national secretary for the energy union GMB said earlier this week;
“Ofgem should be abolished and the government itself should take over responsibility for regulating the industry so both are accountable to Parliament,”
“Government cannot duck taking the decisions needed to keep the lights on and ensure the decarbonisation of the sector. Government should also have powers to cap prices and limit profit levels and, where necessary, to finance and run power stations.”
The comments from the union were made due to Ofgem announcing they were going to make the market fairer and more competitive. Commenting on the comments made by the union, an Ofgem spokesperson said;
“Ofgem works within the government framework which has set out there should be a competitive energy market. We believe competition is in the best interests of consumers and put in protections where necessary, such as the price cap for pre-payment meter customers.”
The union then added following Ofgem’s comments;
“Here we go again with more Ofgem tinkering over the pretence that a free market is possible in this sector.”
Whether we want the government to take over from Ofgem or not the likelihood of it happening is little to none. It’s not in the government’s interest to be making some significant changes when everything is so unstable at the moment. Leaving the EU, change of prime minister and all the different procedures put in place in recent years by Ofgem – this move probably won’t happen.
Whether that’s a good thing or not, we won’t know anytime soon.