Ofgem disputes newspaper criticism

Ofgem has published a letter replying to criticism from a British broadsheet. The Times published a story yesterday saying the regulator is “too soft” in promoting competition between energy suppliers […]

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By Jacqueline Echevarria

Ofgem has published a letter replying to criticism from a British broadsheet.

The Times published a story yesterday saying the regulator is “too soft” in promoting competition between energy suppliers and that it “has failed to crack down on door-to-door misselling” and on regular cases of overcharging.

Dermont Nolan, CEO at Ofgem said: “Yesterday’s leader claimed that Ofgem was too soft on the industry while producing no convincing evidence to support the case. The facts tell a different story. Ofgem has imposed over £200 million in penalties on the industry since 2010 – £40 million of this for misselling.”

Mr Nolan claims that the recent £26 million fine npower has to pay is a “clear signal that we are determined to punish those companies that fail consumers through poor customer service”.

The newspaper’s article added the regulator “has not done enough” to help consumers get the best deal available in the market.

He added: “Shortly after being appointed CEO I used the strongest sanction we have by referring the market to the Competition and Markets Authority (CMA). The reason for the referral was that I believe the market was not working properly for consumers and we stand ready to implement the CMA’s final remedies to ensure consumers get a better deal.”