In response to the news that Ofgem is implementing a new length of price control for energy firms, please see below comment from Omar Rahim, CEO of blockchain and AI energy solutions company Energi Mine: https://www.ofgem.gov.uk/publications-and-updates/tougher-set-price-controls-move-step-closer
“This is a long overdue step in the right direction by Ofgem for fixing a perpetual problem in the UK energy market. For far too long, the ‘big six' have been incentivised to sell the most energy they possibly can, at the highest price they possibly can, at the direct expense of the consumer. This has meant multiple price rises in recent years that are frequently unrelated to the real price of energy. To provide an example from the last 12 months, in April of this year British Gas raised prices by 5.5%, after already raising prices by 12.5% in September of 2017.
The timing of this new length of price control coincides perfectly with news from earlier this month that a UK energy price cap has been approved by MPs. The Domestic Gas and Electricity (Tariff Cap) will require Ofgem to cap both standard variable and default energy tariffs. In addition to helping protect 11million consumers, this move will encourage greater efficiency and competition among energy providers and hopefully open up the market to smaller scale local generators. The technology is there to match customers with smaller providers and facilitate a P2P system of power distribution independent of the dominant energy companies. The traditional model of large, centralised power stations generating the vast majority of the UK's electricity will, in the coming decades, become a relic.”