The Energy Advice Line has welcomed initiatives that Ofgem claims will slash more than £2 billion from customers’ bills.
But Julian Morgan, managing director of the price comparison, switching and advice service, said the price controls and other measures came after years of inaction by the regulator.
Many households and businesses would still struggle to pay their bills this winter and lack of competition in the UK energy market remained the main cause of high prices and poor service, he said.
Ofgem has announced a tough range of price control measures for power distributors that it claims will slash bills by the equivalent of £11 per household. The measures limit the amount distributors can charge for the job they do.
The controls follow Ofgem’s rejection of earlier plans put forward by operators on the grounds they failed to deliver “good enough value” to customers”.
“These controls will deliver savings to both business energy consumers and householders, but an £11 reduction is small change when you consider the annual average dual fuel bill is more than £1200,” Mr Morgan said.
“In spite of this step in the right direction, consumers are still suffering from years of inaction by the regulator and government, and their failure to bring energy companies into line.
“Of course it is welcome that Ofgem is forcing energy companies to give the needs of customers a higher priority, because for years they failed to do this of their own accord, putting profits first.
“But the regulator needs to continue to keep pressure on all players in the industry – both at a supply and distribution level – and make clear that customers’ best interests are key.”
Ofgem has also announced that its price control settlement will see network companies spend £17 billion over the next eight years to upgrade and maintain the UK’s local electricity network.
In addition, it has imposed a £39 million fine on generators Drax and InterGen for failing to meet energy efficiency targets for low-income households.
“Following its announcement of a full competition review of the energy sector earlier this year, Ofgem is keen to try to get its own house in order,” Mr Morgan said.
“But I hope that Competition and Markets Authority will explore Ofgem’s own role in why the UK energy market, and therefore customers, have suffered from lack of competition.
“In the meantime, business energy users and householders have no option but to continue to search the market and take control of their own energy supplies. It’s really the only way to avoid paying over the odds.”
The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.
The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice service for business energy customers throughout the to of their energy contracts.
For further information visit www.energyadviceline.org.uk