Ofgem aiming to bring energy suppliers into line
The ‘big six’ energy suppliers will be suffering from extreme miff this morning after their regulator, Ofgem, unveiled a radical set of proposals aimed at bringing the cash-guzzling, power-spewing industry into line.
Ofgem have said that they’ll force the companies, who comprise of British Gas, npower, Scottish Power and some other ones, to auction off up to a fifth of the electricity that they generate, leading to more competition from other companies. We’re already putting together a business plan for Bitterwallet Energy and we think we’ll be able to give away free pencils to some of our prospective customers.
Companies that do not comply with the new way of doing things could face the wrath of the Competition Commission and maybe even have all of their pencils taken away.
Ofgem recently said that energy suppliers’ net profit margin per typical customer had risen from £65 in September 2010 to £90 in November, a 38% rise in just a couple of months. And you can’t send the gas or electricity back because there isn’t a reverse button. We know – we’ve checked.
Also announced as part of the crackdown is a demand that the suppliers introduce simpler tariffs so that hapless punters can compare prices and pencil giveaways with more ease. There will also be an investigation into Scottish Power and its pricing regime, although their pencil policy is believed to be unaffected.