Stephen Fitzpatrick on Ofgem’s announcement
By OVO Energy Thursday 27 March 2014
Today Ofgem released a report proposing that the Competition Markets Authority (CMA) investigates the energy market, here’s what Stephen Fitzpatrick had to say on the announcement:
"Ultimately I believe this is good news but it is a shocking indictment of Ofgem’s performance over the past 15 years. We have heard time and time again that the market is not working in the interests of most customers and yet the regulator has done almost nothing to bring the big six to task. It is likely we will see a much more dramatic shakeup of the sector now and that can only be good news for energy customers and the industry as a whole. However this is going to take time and we won’t see the benefit for at least two years. And in the meantime the Big Six are still charging the most they can get away with.
It is just not good enough that energy companies react so quickly when prices go up but are so slow in passing on cost savings to customers when prices fall. Just yesterday SSE announced that they wouldn’t be increasing their prices for the next 20 months but in fact customers’ bills should be coming down. Since the start of this winter we’ve seen wholesale costs fall by as much as 10%. OVO has passed on this savings in a series of price cuts and now charges an average of £170 less than the big six.
Energy companies shouldn’t be waiting for a competition commission to force them to reform if they treated their customers fairly in the first place, we wouldn’t need this intervention at all.”
Stephen Fitzpatrick, CEO and founder of OVO Energy