UK: Ofgem apologies for failing to act sooner on energy price cap

Britain’s energy regulator, Ofgem, has apologized for not acting sooner to cap bills for vulnerable households as he came under fire from MPs for his “passive” approach. Dermot Nolan, chief executive of Ofgem, admitted the regulator “should have done better” in protecting low-income households from high energy costs.

MPs accused Mr Nolan of acting “like a bystander rather than an active participant” as he gave evidence to the Commons business committee on efforts to rein in bills.

The government published draft legislation last October for a cap on the most expensive type of gas and electricity bills, paving the way for the biggest state intervention in the retail energy market since privatization 30 years ago.

On the energy price cap Theresa May has promised, he said legislation would need to be given royal assent before the parliamentary recess in July if the protection were to come into effect by Christmas 2018.

He also admitted he thought it was possible some tariffs would go up under the cap on standard variable tariffs and switches between suppliers may fall. “I cannot guarantee that some prices will not rise,” he said.

Full Content: The Guardian

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