With the secretary of state for business, energy and industrial strategy, Greg Clark, urging Ofgem, to consult on alternative options for reducing energy bills through market intervention - we consider the options available to Ofgem.
Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, wrote to Ofgem on 21 June, asking them to advise him “on what actions [they] intend to take in three respects:
This follows a decision by the Government in the Queen’s Speech not to legislate immediately on a price cap for all customers on Standard Variable Tariffs (SVT).
With many possibilities available to Ofgem, we have provided an overview of eight different interventions that could potentially be implemented, providing advantages and disadvantages for each.
Read more about Where next for retail price regulation?
We have also assessed the original proposal of a price cap for all SVT customers in our ‘What would a price cap mean for the energy market?’ report.
Continued access to the IEM will help keep bills down and maintain security of supply.