GMB, the energy union, calls on the Government to urgently
implement many of the recommendations of Dieter Helm’s ‘Cost of
Energy Review’ - in particular those regarding Government’s role
in the energy market and the downgrading of OFGEM, which GMB has
long argued for.
The recommendations to downgrade Ofgem and for the
government to establish independent national and regional systems
operators would allow Ofgem and its £90m annual budget to return
to its former ‘littleness,’ significantly reducing the regulatory
burden and its costs.
GMB again warns that the combination of uncertainty
caused by lack of clarity and delays in implementing a price cap,
plus the risks of getting the balance wrong, could lead to
thousands of short-sighted job cuts in the energy sector as firms
enter a race to the bottom in the energy supply market to protect
profits.
The announcement from SSE and NPower that they plan
to merge suggests less competition in the energy sector not more,
as companies adjust to the pressures of a price cap and the Big
Six become the Big Five.
Justin Bowden, GMB
National Secretary for Energy said:
“We are at a watershed in terms of the UK’s energy
policy, where clarity and leadership by Government are
desperately needed if we are to make the right decisions for the
country’s future.“
By explicitly recognising that Government is now
responsible for all key decisions in the energy sector, and that
all the players are in effect contractors, the Helm Report has
shone a spotlight on the huge inadequacies in energy generation
and supply that we face as a country and which must
be addressed without delay.
“Hesitation by Government to face up to these massive
structural issues, of which price capping is just a part, have
spawned merger efforts by two of the Big Six suppliers already as
they rush to protect profits no doubt by trying to shed thousands
of good, UK jobs.
“As Helm exposes, competition in the Sector is in
fact a mirage and radical overhaul is required if the fleecing of
consumers is to stop and damage to vital infrastructure through
thousands of short-sighted job losses at SSE, NPower and across
the energy sector are to be avoided.“The Helm Report also wants
to stop the rip-offs by the Renewables sector.”
Notes to Editors:
Key points from Dieter Helm’s ‘Cotst of Energy
Review’
11. The government should establish an independent
national system operator (NSO) and regional system operators
(RSOs) in the public sector, with relevant duties to supply, and
take on some of the obligations in the relevant licences from the
regulated transmission and distribution companies. The NSO and
the RSOs should, where practical, open up the various functions
and enhancements to the networks to competitive auctions and, at
the local level, invite bids for network enhancements,generation
and storage, and demand-side response (DSR) from energy service
companies.
12. The separate generation, supply and distribution
licences, at least at the local level, should be replaced by a
simpler, single licence.
13. As a result of the above changes, the role of
Ofgem in network regulation should be significantly
diminished.
Full repoert here: https://www.gov.uk/government/publications/cost-of-energy-independent-review
