Speaking at the Future of Utilities Smart Energy conference earlier today, Ofgem Chief Executive Officer Jonathan Brearley said: “Like so many, I am horrified and heartbroken by what is happening in Ukraine, and by the immense suffering of the Ukrainian people as a result of the Russian invasion.
“Many of us have relatives and friends and colleagues who are caught up in this conflict.
“I want to make it clear that Ofgem will do whatever is needed to support the government in executing its strategy on economic sanctions against Russia.”
Mr Brearley said Russia’s invasion will undoubtedly change many things and has made the reality of extreme volatile prices even starker.
The boss of Ofgem added: “I have never seen a situation like this. Indeed, I cannot find a similar situation in our post-war energy history.
“We started winter, with an international gas price shock of unprecedented pace, scale and duration. Prices, on average – usually 40-60 pence/therm during recent winters – were nearly five times this from September to January, resulting in a record rise of almost £700 in the price cap.
“However, this gas crisis is not over.
“We are entering a second, more serious phase that will have further consequences for customers and further financial strain for retail companies.”
Last month, speaking during a Business, Energy and Industrial Strategy Committee session, Mr Brearley talked about the need to update the price cap more frequently to reflect the changes in energy prices.
Jonathan Brearley said the economics of energy has fundamentally changed over time.
He said: “Before the crisis, many forms of low carbon generation had already become cheaper than conventional generation.
“Now, with the volatility, we see in gas prices, the economic case is far stronger.”