Friday, 22 November 2013

Ofgem tells energy distribution companies to cut costs

Energy regulator Ofgem has told five of the six electricity distribution companies to cut costs for consumers.

It has rejected their investment plans, believing they should be able to "deliver more for less".

Only Western Power Distribution's (WPD) business plan was approved by the regulator.

When I first read this headline I mainly focused on the words: Ofgem, tells, energy, companies, cut, costs and I thought Ofgem are actually standing up to the energy companies and saying to them your price rises are ridiculous and they need to stop, but after reading it again I realised that’s not what they’re doing at all.

Ofgem have decided to go after the much smaller distribution companies, apparently distribution accounts for about 20%, I rounded up slightly, of the average domestic electricity bill, to which I have one thing to say what about the other 80% that is down to British Gas, SSE, EDF etc. why are Ofgem content to let them do what they want.


Why aren’t they being told to cut costs or, to put it more simply, being told stop taking the piss and ripping people off? When are Ofgem going to do something about that?

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