Nusrat Ghani, MP for Wealden, has quizzed bosses of regulator Ofgem as part of the Business, Energy, and Industrial Strategy Committee evidence session on energy prices.
The session was part of the Select Committee’s new inquiry into energy pricing and the future of the energy market. Last week the regulator raised the energy price cap by nearly £700 a year.
As the Committee Member, Nusrat said all she was hearing was “a bit too little, too late” and asked the Chief Executive whether poor decision making led to customers paying higher bills.
During the session Chief Executive Jonathan Brearley admitted that the regulator had been too focused on increasing competition in an attempt to break-up the stranglehold of the so-called “big six” of British Gas, EDF, Eon, Npower, SSE and ScottishPower. Mr Brearley said the regulator should have been “more careful” about the financial resilience of smaller suppliers entering the market over the past decade.
Nusrat also asked what the impact on energy prices if Russia were to invade Ukraine and gas supplies to Europe were impacted. She also quizzed the boss on whether the UK should be following the example set by Germany in reducing the “Green Levy” which funds renewable energy projects, as a way of lessening the impact of price rises on the consumer.