Union calls for Ofgem to be scrapped

The GMB union for energy workers has called for Ofgem to be abolished.

The union wants government to take more responsibility for regulating the industry and auctioning changes from the Competition and Markets Authority (CMA) investigation in June.

“Ofgem should be abolished and the government itself should take over responsibility for regulating the industry so both are accountable to Parliament,” GMB national secretary for energy Justin Bowden said.

“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 union’s comments come after Ofgem announced its plans to implement the CMA recommendations including a database of disengaged customers and a transitional price cap for prepayment customers. The regulator claimed it would deliver “a more competitive and fairer energy market”.

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.”

GMB added: “Here we go again with more Ofgem tinkering over the pretence that a free market is possible in this sector.”