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TOOTHLESS watchdog Ofgem was accused by MPs last night of sitting on its hands while energy companies have raked in excess profits under a scheme that it designed.
In a robust attack on the regulator’s performance, Commons energy and climate change committee chair Tim Yeo accused it of setting price caps too high and performance targets too low.
The complaint centres on an agreement designed to place limited controls on the distribution of gas and electricity by a gaggle of 12 privateers.
Nearly a quarter of every household bill goes towards firms running and maintaining the network.
And Ofgem’s 2013 RIIO framework sets out price caps and performance and investment targets.
But MPs said that firms were generating higher than expected profits — which suggested that the regulator had set its sights too low.
Ofgem needed to monitor RIIO more effectively and set out “stronger, corrective measures,” Mr Yeo said.
