Ofgem believes today’s EMR document has the interests of consumers at its core.
And the watchdog’s chief executive said that Ofgem’s review of price tariffs of the ‘Big Six’ energy suppliers went hand-in-hand with the reform package.
Alistair Buchanan said the consultation measures were “an important step on the road to changing the electricity market to meet consumers’ long-term interests for reliable and low carbon energy supplies”.
He added: “By starting the reform process promptly, the government is focused on keeping investment costs and energy prices as low as possible for consumers.”
Mr Buchanan confirmed that “as indicated by DECC in its consultation, Ofgem will also be taking forward reform proposals to ensure electricity and gas wholesale prices properly reflect the value of security of supply and will be advising DECC on issues such as generation capacity”.
He added that “Ofgem has an important role to play as independent regulator in protecting consumers in an era of rising energy prices.
“Given the government’s projection of higher electricity prices, it is vital that consumers can have confidence that prices in the retail market are providing them with value for money. This is why Ofgem launched its current retail market inquiry.”