UK: Regulator hints at increase in powers

Regulator Ofgem may be given new powers to tackle Britain’s long-term gas and electricity needs and counter the short-termist investment strategies of companies that have been blamed for the UK’s energy crisis.

Ofgem has written to power companies to tell them that it is to investigate the electricity market, and has asked for “initial thoughts” about “looking significantly further into the future” than the regulator’s existing five-yearly price reviews.


It is a potentially controversial move by Ofgem because in Britain’s deregulated energy market power companies are left to compete relatively independently, without the sort of intervention to direct long-term investment that is seen in France, Germany and many other countries.

The massive rise in domestic gas prices that consumers suffered two years ago, and the “energy gap” forecast for the next decade as North Sea oil declines, are seen as two examples where Britain’s failure to plan long term has caused problems.

Telegraph