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Reform is urgently needed”, Citizens Advice responds to Ofgem’s latest proposals for energy market

In its role as the official watchdog for energy consumers, Citizens Advice has responded to Ofgem’s proposals to reform the retail energy market announced today. Including: 

  • A package of measures to boost financial resilience in the sector 

  • Financial stress testing for all suppliers from January

Dame Clare Moriarty, Chief Executive of Citizens Advice, said:

“Reform of the energy market is urgently needed. Ofgem’s failure to adequately regulate the sector left it vulnerable to recent price spikes, with the subsequent collapse of 26 firms leaving bill payers facing a multi-billion pound bill. 

“Ofgem is right to prioritise building sustainable and resilient business models that can withstand increases in wholesale gas prices. Everyone should be able to trust their energy supplier is fit to operate.”

Commenting on proposed changes to the price cap, Dame Clare Moriarty said: 

“There’s likely to be a large increase in the price cap from April 2022. It's vital that government and Ofgem work together to support households as bills rise, particularly those on the lowest incomes.”

 -ends-

Background:

  • Citizens Advice recently published a major new report on regulatory failings in the energy market. 

  • It estimates supplier failures since Aug 2021 will cost consumers £2.6 billion - around £94 per customer from 2022 - this is not including the £1.7 billion of taxpayer money the Government has set aside for Bulb’s failure.