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GMB Responds To Proposed Energy Price Cap

Thursday, September 6, 2018

GMB RESPONDS TO PROPOSED ENERGY PRICE CAP

The only way to really protect consumers from being ripped off in a monopoly is if the Government takes on functions of energy regulation including price control says GMB Union

GMB, the energy union, has responded to Ofgem’s proposed price cap.

The watchdog made the announcement after Parliament passed the Government’s Domestic Gas and Electricity (Tariff Cap) Act, which became law on July 19 and gives Ofgem a duty and the powers to put the price cap in place. [1]

Justin Bowden, GMB National Secretary, said: 

“The very idea of a competitive market in a natural monopoly is a contradiction in terms.  

“The only way to really protect consumers from being ripped off in a monopoly is if the Government itself takes on the functions of energy regulation, including price control - making it accountable to parliament, subject to scrutiny - and with powers to limit profits and, where necessary, to finance and run power stations.

“That would be the foundation of an energy policy that took the real decisions needed to protect consumers, keep the lights on and ensure the decarbonisation of the sector, whilst guaranteeing the resources needed to generate jobs and to pay for the vital infrastructure crucial to maintain our power networks.”

ENDS

Contact: Justin Bowden on 07710 631351; or GMB Press Office on 07958 156846 or at press.office@gmb.org.uk

Notes to Editors:

[1] https://www.ofgem.gov.uk/publications-and-updates/ofgem-proposes-price-cap-give-11-million-customers-fairer-deal-their-energy

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