Our pathetic energy regulator has overseen a total disaster. Ofgem must act fast to protect vulnerable customers after a string of terrible mistakes. Household energy bills could pass the £3,000 mark for the first time ever when the next price cap rise kicks in, in October, making the findings of The National Audit Office (NAO) a timely reminder of the part the very body tasked with policing the industry has played in the horrible mess. The contents of the NAO’s report make for genuinely jaw-dropping reading. Customer credit balances were built up by effectively overcharging on monthly direct debits. In some cases those then disappeared as executives extracted millions of pounds in salaries and fees before the companies went under, with customers and taxpayers left to foot the bill. Incredibly, about £400m of customer deposits has vanished after nearly 30 suppliers went bust. But the cost to us as taxpayers from the vast clean-up effort is far greater – £2.7bn onto everyone’s bills, equivalent to £94 per household so far. As the NAO says: “Consumers have borne the brunt of supplier failures at a time when many households are already under significant financial strain having seen their bills go up to record levels.” This cannot be allowed to happen again. Ofgem has said it accepts the NAO’s findings and is working to fix the problems raised, but can it really be trusted to get its own house in order after the mess that it has presided over?
Telegraph 22nd June 2022 read more »