OFGEM gets tough

The utilities regulator Ofgem has welcomed the Queen's Speech proposals that would see its powers extended.

If passed, the Utilities Bill would give director general Callum McCarthy more scope to promote the interests of users and to control anti-competitive practices amongst suppliers. Also planned is a new wholesale trading agreement that should see electricity prices falling by this time next year.

And in an action that almost seemed timed to emphasise its tough stance, Ofgem has found two northern suppliers in breach of the Electricity Act. Computer problems were blamed for a total backlog of about 12,000 unbilled accounts. The act requires timely and accurate billing.

Ofgem has limited the number of new accounts these companies can open over the next several months until the problems are resolved.

Elliott Chase