Jackson believes that the price cap has been crucial in protecting consumers during the crisis and ensuring that the benefits of falling costs are passed on to customers.
Greg Jackson, Chief Executive Officer and Founder of Octopus Energy commented: “Ofgem’s price cap has been critical in protecting consumers in the crisis and ensuring falling costs get passed on to customers.
“The coming winter could still be challenging and we want Ofgem to keep the price cap as low as possible by resisting pressure to increase it.”
On the other hand, Simon Oscroft, Co-Founder of So Energy, has called for fundamental regulatory reform of the retail market to address the current situation.
Oscroft argues that the existing price cap regime is “inadequate” and “inflexible”, making it difficult for remaining suppliers to offer competitively priced sustainable tariffs.
Simon Oscroft, Co-Founder of So Energy said: “Fundamental regulatory reform of the retail market is needed to reflect the new normal we now find ourselves in. The existing price cap regime is not fit for purpose.
“The price cap is too unwieldy and inflexible, making it harder for the suppliers left in the market to offer sustainably-priced competitive tariffs. There also needs to be permanent protection for those customers most in need.
“That’s why we are calling for a social tariff to protect the ~ten million customers on means-tested benefits.
“Alongside this, we need Ofgem’s ban on acquisition-only tariffs to remain in place. We need a fair market, and not a market that penalises customer loyalty, and incentivises suppliers to price cheap teaser tariffs at financially irresponsible levels.”