 said. Households are paying an extra £94 because Ofgem was "slow to act", the PAC saidCredit: Getty Some 29 energy suppliers have failed since July last year, affecting around four million households. Customers have been left to pick up the £2.7 billion cost of the failures at an extra £94 per household, a cost that will 'very likely increase', the PAC said in a report. The committee concluded this was due to 'Ofgem's failure to effectively regulate the energy supplier market'. It added that the regulator 'did not strike the right balance between promoting competition in the energy suppliers market and ensuring energy suppliers were financially resilient'. It found the price cap was 'providing only very limited protection to households from increases in the wholesale price of energy'. Energy bills are currently frozen at £2,500 for the typical household under the energy price guarantee. It noted that Ofgem expected prices could 'get significantly worse through 2023'. It comes as of households could be hit with energy bill hikes in April next year as the government discusses raising the price cap. PAC said the position of vulnerable customers, who already pay higher energy prices, was 'unacceptable'. And it said it was not convinced that Ofgem 'yet has the skills and capacity it needs to take a more proactive role in regulating the energy supplier market'. Rocio Concha, director of policy and advocacy at Which?, said a 'long-term' solution to mounting energy costs is clearly necessary. 'While additional support and the energy price cap guarantee provided short-term relief for many households, it is clear we need a long-term solution to soaring bills,' she said. 'The Government and regulato){kind=link}
OFGEM’s failure to effectively regulate energy suppliers has added £94 to household energy bills, the spending watchdog has said.
The energy regulator did not tighten requirements for new suppliers until 2019 or for existing suppliers until 2021, the Public Accounts Committee (PAC) said.
Some 29 energy suppliers have failed since July last year, affecting around four million households.
Customers have been left to pick up the £2.7 billion cost of the failures at an extra £94 per household, a cost that will “very likely increase”, the PAC said in a report.
The committee concluded this was due to “Ofgem’s failure to effectively regulate the energy supplier market”.