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Ofgem urges energy suppliers to ‘grow up’

The energy regulator has insisted suppliers “grow up” and warned that they have “one more shot” to make competition in the market work, amid the Competition and Markets Authority’s (CMA’s) investigation into the market.

Speaking at the launch of the Edelman Energy Trust barometer, Ofgem’s chief executive Dermot Nolan called on suppliers to gain consumer trust before a new approach of fixed prices or government intervention could be taken.

“Energy companies may complain about over regulation but I think a swift look in the mirror may be of some benefit to them,” he said.

“Energy companies have a responsibility to make competition work and it is also in their interest. I think we probably only have one more shot at this. I strongly hope we don’t have to resort to more price regulation in the future… But energy suppliers over the next few years are going to have to earn that trust and I would say to them, now is their chance.”

Nolan added that he had no desire to apply further regulation to the market “for suppliers to find another loophole in a never-ending game of cat and mouse”, but insisted the regulator would be relying more on principles.

“This will put an onus on suppliers to end the box-ticking culture and instead… expect suppliers to grow up.”

The two-year probe by the CMA into the energy market, following a recommendation from Ofgem, identified a lack of competition and consumer engagement in the sector and the final remedies are due to be published in June.