The only way to really protect consumers from being ripped off in a monopoly situation is if Ofgem is abolished and all its regulatory functions taken over by the government itself, making its regulatory role subject to scrutiny and accountable to parliament with the powers to cap prices says GMB
GMB, the union for energy and gas workers, has commented on today's announcement by Theresa May and Greg Clark, that the government intends to give Ofgem greater powers to cap energy prices.
Justin Bowden, GMB National Secretary, said:
“Today's announcement falls short of the boldness needed to protect every bill payer in the country from excessive profiterering by the energy companies and the care required to also ensure sufficient resources in the system to pay for the vital infrastructure needed to maintain our power networks.
“GMB were amongst the initial proponents of an energy price cap because the very idea of a competitive market in a natural monopoly is a contradiction in terms - hence the need for a price cap.
“GMB has long argued that Ofgem should be abolished and Theresa May could have been bold today and done just that.
"The only way to really protect consumers from being ripped off in a monopoly situation is if Ofgem is abolished and its regulatory functions are taken over by the government itself, making its regulatory role subject to scrutiny and accountable to parliament with the powers to cap prices.
"Binning Ofgem and giving government itself the role of energy price regulation would be the foundation of an energy policy that took the real decisions needed to keep the lights on and ensure the decarbonisation of the sector, whilst guaranteeing the resources needed to generate jobs and to pay for the vital infrastructure crucial to maintain our power networks.
“Government should also have powers to limit profits and, where necessary, to finance and run power stations.”
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