The Mail on Sunday's recent article “Hard-up customers of energy firm OVO hit with shock emails telling them to pay hundreds of pounds in unexpected charges[1]” is a stark reminder of two glaring problems in the energy industry. Firstly, Ofgem needs to deliver on its promise to strengthen back-billing protections for customers. Secondly, smart meters need to deliver on their promise of accurate bills.
As part of its Review of Economic Regulation the government is considering reforming the appeals process for regulated utilities. This collection of articles written over a five-year period provides a blow by blow commentary by Maxine Frerk on appeals that have taken place across energy and water – drawing out lessons and bringing to life issues that government has raised.
New Economic Foundation’s Chaitanya Kumar leads work on the think tank’s Green New Deal, just transition and other environmental programmes. Here he talks about the role of incumbents and the vital role of fairness in addressing climate change.
A new collective action case is setting out to sue water companies in England for discharging sewage into seas and rivers. Could this first-of-its-kind case be an essential tool in the fight against the discharges of sewage?
The new government’s recent “growth plan” has prompted huge debate and controversy. But whatever people may feel about the specific proposals, and who they benefit, it also raises relevant questions about the growth agenda more widely, and specifically for the utility sector. Associate Martin Hurst asks, how can the needs of net zero and the natural environment - both critical to utilities - be legitimately framed as good for growth?
With references to Ofgem being “incompetent”, to criticism of its “negligence” and “systemic failure to effectively regulate”, the House of Commons BEIS’ Select Committee’s latest report[1], on Energy pricing and the future of the Energy Market doesn’t pull any punches, writes Zoe McLeod, Sustainability First's Policy Director.
But while it’s Ofgem’s turn in the spotlight, there are important lessons to be learned, and a warning, for all regulators and governments who oversee them. Time and time again, consumers and the environment are being failed by poor monitoring, slow enforcement and weak protections with often the most vulnerable worst impacted. This benefits no-one and leaves good companies tarred by the same filthy brush.
The cross-party Committee calls for Ofgem to improve “its regulatory oversight, its decision-making processes, the use of its enforcement powers, and the quality of its governance.” With this we agree. A number of other regulators should also follow suit.
It is tempting in the light of Russia’s invasion of Ukraine to think we must focus on short term energy security. But the need to address the climate crisis and ensure a fair transition to net zero have not gone away. In fact it is more urgent than ever that we stick to our net zero targets. Accelerating action on climate change is the best way to improve our energy security.
As customers face an ongoing energy crisis there is an urgent need for targeted financial support. But the crisis has also underlined the need for wider energy savings and efficiency including a push for home insulation. This would not only help households struggling this winter but is essential in tackling the pressing challenge of climate change and the net zero transition.
All the electricity distribution networks have now published drafts of their RIIO2 Business Plans (with the exception of UK Power Networks who have produced a 20-page summary).
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