The GMB Energy Union Calls For Ofgem To Be Scrapped

parliament building

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.

What Does Brexit Mean For The Energy Sector

EU Referendum - Signage And Symbols

As you may have heard, the UK recently voted in a historic referendum that resulted in us actually leaving the European Union. The result has taken many by surprise, including Prime Minister David Cameron, who has since resigned. The question on everyone’s lips now is, what will life be like now post-Brexit?

Throughout the referendum campaign we’ve heard a fair amount on the negative impacts Brexit would have on the UK economy and more specifically the UK’s energy sector.

Now not everyone is a big fan of change, however, it doesn’t look like we are going to have much of a choice.

Through a bit of research, it appears that it will be utilities that stand to be most affected within this sector. The deciding factor on the severity of the effect is if Britain will remain in the EU’s Internal Energy Market (IEM) or not.

Industry Experts Reaction To The News

Both SSE and National Grid have urged the Government to ensure Britain remains in IEM as it ensures smooth trading of gas and electricity between its members. However, if we do end up excluded from the IEM, it could result in costing UK consumers £500 million a year. It is a hefty price to pay, but this is due to disruption to electricity trading and the potential cancellation of plans for new undersea power cables to the Continent.

Other industry experts have added their views on Brexit; a senior editor at the Economist stated ‘the result had put a lot of uncertainty over the UK’s energy industry.’ While others are very matter of fact and have stated that ‘we have always been an island and that our energy system is used to being isolated from the continent.’

However on a more positive spin, now the UK has left the EU it means making energy deals with countries such as China will be a lot easier which could increase the UK’s attractiveness for investment.

Exerts taken from; http://www.telegraph.co.uk/business/2016/07/02/what-does-brexit-mean-for-the-key-parts-of-the-uk-economy/

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Why Should You Sign A Letter Of Authority?

signed letter of authority hamed adefuwa

What is a Letter of Authority or LOA?

Letter Of Authority

As an energy consultant, I will endeavour to make sure you are on the tariff you should be and paying the minimum possible amount for your gas or electricity. After a quick chat or few emails there is not much I need from you, except one vital thing; a Letter of Authority (LOA). Many people often ask about this and exactly why it is required, so take a look at the guide below to give you all the answers you need.

Letters of Authority Explained…

It’s pretty simple really. Before we can go out and get your business the very lowest rates when it comes to your gas or electricity, we need to have your permission. The only way your current supplier can be sure of this, is if we provide them with a Letter of Authority (LOA). Once we have this, our team of commercial energy specialists can carry out the gathering of data and determine exactly what they can save you. This piece of literature also gives us the authority to manage any administrative tasks on your behalf, meaning all the hassle is taken out of the process for you.

Love Energy Savings Act on Your Behalf…

Ultimately, this document allows us to fulfil our promise of taking care of all the nitty gritty with regard to your home or business energy switch, such as termination letters and so forth. Our energy team are experts when it comes to this kind of thing and not only make sure this is done properly, but also in a timely manner. This means that your energy switch is done in the quickest possible amount of time and that you can start making savings on your gas and electricity straight away.

Don’t worry, by signing this letter of authority to act, you are not signing your life away and guaranteeing that you will switch suppliers through Love Energy Savings. It is simply permission for us to speak to the various energy suppliers on your behalf and the process is standard across the whole of the industry.

Find Your LOA in Your Welcome Pack…

You do not have to write your letter of authority yourself when dealing with Love Energy Savings either. Once you have made your initial enquiry, we will send you a welcome pack which is full of all the goodies you need to lower your utility bills. In there you will find your LOA all ready to be signed by you and all you need to do is pop it in the post, sit back and relax with the fantastic peace of mind that you will be on a lower energy tariff in no time at all.

If you are still unsure about anything to do with your letter of authority or indeed, any other aspect of your energy switch then do not hesitate to get in touch, we are here to help.

Information taken from: https://www.loveenergysavings.com/guides/what-is-a-letter-of-authority-or-loa/

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