Category Archives: Ofgem

‘Wake-up call’: ministers launch urgent investigation into Heathrow shutdown

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Government says lessons need to be learned after the substation fire that caused chaos for 300,000 passengers

The government has launched an urgent investigation into the power shutdown that crippled Heathrow airport, with experts warning it was a “wake-up call” about vulnerabilities in the nation’s critical infrastructure.

The energy secretary, Ed Miliband, has commissioned the independent National Energy System Operator (Neso) to investigate the incident and assess the UK’s energy resilience. The regulator Ofgem warned it would “not hesitate” to take action if there were any breaches of standards or licence obligations.

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Energy network owners have made £3.9bn from higher bills, says report

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Citizens Advice believes Ofgem made flawed interest rate calculation for companies in Great Britain

The companies behind Great Britain’s gas pipes and power lines have pocketed a windfall of nearly £4bn from household bills during the energy and cost crisis, according to a report.

The analysis, by Citizens Advice, argued that energy network owners were able to make the “excess profits” over the past four years after the industry regulator misjudged their costs.

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Almost 40 firms banned from installing UK insulation amid botched jobs outcry

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Schemes backed by previous government to improve energy efficiency have left homeowners unable to sell

Almost 40 building companies have been blocked by the government from installing insulation amid a growing outcry over the profusion of botched jobs across the UK.

Ministers also announced that any homes found to have received botched insulation would have the issues put right by the installer responsible at no extra cost to the homeowner.

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Millions of households in Great Britain face higher energy bills as price cap rises

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Average annual bill in England, Scotland and Wales increases by 1.2% to £1,738 from New Year’s Day

Nine million homes will face higher energy bills from Wednesday as Britain braces for freezing temperatures and snow warnings for the new year period.

The average energy bill for households across England, Scotland and Wales will rise by 1.2% from New Year’s Day to £1,738 a year for a typical household after the energy regulator raised its cap on gas and electricity charges.

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E.ON must pay £14.5m to prepayment customers after billing failures

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Ofgem says nearly 250,000 people will each receive average of £144 in compensation and refunds

The energy regulator has ordered power supplier E.ON Next to pay £14.5m in compensation to nearly 250,000 prepayment customers, after an investigation found “unacceptable” failures to pay credit they had on accounts or final bill payments they were owed.

Ofgem found that the customers were affected over an 18-month period from early 2021 to late last year by an error in E.ON Next’s billing system. About 100,000 of the affected accounts were also in credit.

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Subsea cables to help Britain meet green energy goal get green light

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Ofgem gives green light to five interconnectors capable of powering millions of homes

Projects to lay five subsea power cables capable of powering millions of homes have been given the green light as Great Britain prepares to use its giant offshore windfarms to become a net exporter of green electricity in the 2030s.

The energy regulator, Ofgem, has approved three subsea cable projects linking Great Britain to power grids in Germany, Ireland and Northern Ireland to help share renewable electricity across borders.

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Support planned for UK households struggling with winter energy bills

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Government discusses measures after criticism over cuts to winter fuel payments

Ministers have committed to help households struggling with their gas and electricity bills this winter after energy industry bosses warned that consumer debt had climbed to more than £3bn.

With Labour under fire for scrapping universal winter fuel payments to pensioners, ministers met energy industry bosses on Wednesday to discuss ways of supporting struggling households through the coming colder months.

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Average annual energy bill to rise by 9.5% to £1,717 in Great Britain from October

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Campaigners fear increase by £149 in energy price cap by Ofgem will put more pressure on households

Households will begin the run-up to winter with a sharp increase in their energy bills after the industry regulator increased its cap on energy prices by 9.5% from October.

Under the new price cap, the average annual energy bill will rise to £1,717 a year for gas and electricity, up £149 from its current level of £1,568, which has been in place since July.

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Only 1,500 people compensated so far over prepayment meters, Ofgem says

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Regulator says energy firms planning payments for another 1,000 customers after reviewing 150,000 forced installations

Only 1,500 people have been compensated by energy companies for the forced installation of prepayment meters over the past year, figures show.

The energy regulator, Ofgem, said that initial information from gas and electricity suppliers showed that 1,502 customers had received compensation totalling £342,450.

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British Gas launches fixed-rate energy deal offering 12% saving on price cap

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Price Promise tariff gives discount on current cap and guarantees to be at least £1 per fuel under April one

British Gas has launched a fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs, adding a new choice to the hard-to-navigate home energy market.

For the past two winters, consumers have largely been spared having to seek out the cheapest deal, because, in almost all cases, it was their supplier’s price cap-protected standard tariff.

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Call to end ‘cruel’ winter rises as energy bills go up by £100 a year

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Campaign groups call on regulator to abolish January bill increase, saying households are facing an ‘assault from all sides’

Midwinter energy price increases should be abolished to protect households from unaffordable bills “at the worst possible time”, according to a coalition of leading charities.

Charities and campaign groups have called on Ofgem, the energy regulator, to scrap future January bill increases as it prepares to raise the cap on energy prices by 5% from Monday.

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Energy bills in Great Britain to rise by 5% from January as cap hits £1,928

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Ofgem increases minimum price for energy suppliers to charge customers after rise in global gas prices

Households will begin the new year with a 5% increase in energy bills after the regulator raised the price cap to an average of £1,928 a year for the typical gas and electricity bill.

Ofgem raised the maximum price that energy suppliers can charge their customers from £1,834 a year for the typical household between October to December, after a rise in global gas market prices after the start of the Israel-Hamas war last month.

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Ofgem plans to cut wind and solar delays by stripping out ‘zombie’ projects

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Regulator aims to reduce backlog as some wind and solar schemes wait up to 15 years to get hooked up

The energy regulator is to introduce rules designed to kick out “zombie” wind and solar farms from the lengthy queue to connect to Great Britain’s electricity grid.

Ofgem hopes to speed up the process of hooking up new energy projects to the electricity network in the face of a backlog that is deterring investment and Britain’s attempts to switch to clean energy.

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A social tariff could bring a warm glow to UK energy policy

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A lower price cap will still mean unaffordable bills for many. Yet a fairer alternative has been quietly dropped

Nearly a decade ago, former Labour leader Ed Miliband sowed the seeds of the energy price cap, vowing to protect households from unfair tariffs by freezing their energy bills. But even though a cap has been in place since 2018, bills today can be far from affordable, even when they are fair.

On Friday, industry regulator Ofgem will set its new limit on how much suppliers can charge per unit of gas and electricity. Analysts at Cornwall Insight expect it to lower the energy price cap from £2,074 a year for the typical household to £1,823, which would be its lowest level since Russia’s invasion of Ukraine.

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Ofgem to clamp down on rogue energy brokers ‘ripping off’ care homes and faith groups

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Exclusive: Move follows outcry from small firms, charities and others about hidden commission fees

Rogue energy brokers are to be brought to heel by the industry regulator in a crackdown seeking to stop small firms being ripped off by their strongarm tactics and hefty fees.

Under proposed rules to be put forward by Ofgem on Wednesday, energy suppliers would be forced to come clean on the billions in secret broker commissions they load on to business contracts.

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SSE to pay near-£10m penalty over licence breach

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Sum follows Ofgem inquiry into firm’s power generation arm earning ‘excessive payments’ from National Grid

The energy regulator has said the power generation arm of Scottish energy company SSE will pay a near-£10m penalty for breaching the terms of its licence.

Ofgem said a detailed investigation had found that SSE Generation had secured “excessive payments” from the National Grid, the electricity system operator (ESO), during periods of what is known as “transmission constraint”.

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Energy bills could fall to average of £2,053 as Ofgem prepares to lower cap

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But campaigners say it will not give much relief to struggling households as government support ends

Household energy bills could fall to an average of £2,053 a year this summer as the regulator prepares to lower its cap on energy prices next week, according to analysts.

However, campaigners have warned that the lower cap on energy bills, to be announced on Thursday, is unlikely to provide much relief to households that struggled to pay their bills over the winter because the government’s support schemes have come to an end.

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Ofgem orders three energy firms to pay £8m compensation over late bills

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E.ON Next, Octopus and Good Energy did not supply final bill on time to many households that had switched

Three energy suppliers have been made to pay compensation totalling £8m for failing to supply a final bill on time to more than 100,000 households that had switched provider.

The energy regulator for Great Britain, Ofgem, said E.ON Next was ordered to pay £5.5m to almost 95,000 customers because it did not provide them with a final bill within six weeks of moving to another supplier, nor did it pay compensation for the delay within 10 days of the missed deadline.

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Grid connection delays for low-carbon projects ‘unacceptable’, says Ofgem

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Watchdog’s chief writes to energy bosses as Grid sets out plan to cut waits by up to a decade

The energy watchdog for Great Britainwill label the decade-long wait to connect low-carbon projects to the electricity grid as “unacceptable”, amid tensions over a “blame game” for a mounting backlog of green power projects.

Jonathan Brearley, the chief executive of Ofgem, has written to energy bosses to warn that the current system, whereby energy projects queue for their connection, could be replaced by new methods to match power generation with demand.

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Bulb bailout may cost UK government billions less than feared, says watchdog

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National Audit Office estimates bill of £246m for saving energy supplier as result of sharp fall in gas prices

The bailout of the bust energy supplier Bulb is expected to cost the government billions of pounds less than originally feared because of a sharp fall in wholesale gas prices, according to the National Audit Office.

The public spending watchdog said the government may end up spending £246m on saving the supplier, which has 1.5 million customers and was acquired by Octopus Energy late last year.

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