Ofgem's move on the "big six" is very welcome

Finally breaking the stranglehold.

Energy regulator Ofgem has today announced plans designed to shake-up the market for British consumers by forcing the "big six" utility companies to publish the prices at which they buy and sell electricity up to two years in advance.

Together, British Gas, E.ON, SSE, Npower, EDF and ScottishPower account for 80 per cent of the electricity generated in the UK, giving them an extremely dominant position in the market.

"Ofgem's proposals will break the stranglehold of the big six in the retail market and create a more level playing field for independent suppliers," said Andrew Wright, senior partner for markets at Ofgem, “…who will get a fair deal when they want to buy and sell power up to two years ahead."

The proposals are the regulator’s attempts to provide more price transparency in the long term futures market, which has traditionally limited sales to smaller energy suppliers, only allowing them to purchase energy in the near-term spot market.

By requiring the "big six" to publish their long term prices and not allowing them to refuse reasonable requests by smaller suppliers to buy energy, it is hoped that the proposals will make it easier for new entrants to take on the established players and ultimately improve price transparency for customers.

“An increased role ...for independent suppliers and generators is precisely what will help drive the competition that delivers better value for consumers and businesses," said energy secretary Ed Davey.

This latest move follows other recent measures by Ofgem to improve the energy market, such as its efforts to reduce the number of complex offers advertised by utility companies and forcing them to offer consumers the best available tariff.

Often accused by the British public of charging inflated prices and being responsible for appalling customer service, the "big six" have long been a source of much rancor for consumers, when in fact a recent study has found that British households pay below-average prices for their electricity compared with other consumers elsewhere in the EU.

Despite this, once a reputation has taken hold among the population, it is very hard to shake, so these reforms will undoubtedly be welcomed by householders up and down the country.

Photograph: Getty Images

Mark Brierley is a group editor at Global Trade Media

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Beware, hard Brexiteers - Ruth Davidson is coming for you

The Scottish Conservative leader is well-positioned to fight. 

Wanted: Charismatic leader with working-class roots and a populist touch who can take on the Brexiteers, including some in the government, and do so convincingly.

Enter Ruth Davidson. 

While many Tory MPs quietly share her opposition to a hard Brexit, those who dare to be loud tend to be backbenchers like Anna Soubry and Nicky Morgan. 

By contrast, the Scottish Conservative leader already has huge credibility for rebuilding her party north of the border. Her appearances in the last days of the EU referendum campaign made her a star in the south as well. And she has no qualms about making a joke at Boris Johnson’s expense

Speaking at the Institute of Directors on Monday, Davidson said Brexiteers like Nigel Farage should stop “needling” European leaders.

“I say to the Ukip politicians, when they chuckle and bray about the result in June, grow up,” she declared. “Let us show a bit more respect for these European neighbours and allies.”

Davidson is particularly concerned that Brexiteers underestimate the deeply emotional and political response of other EU nations. 

The negotiations will be 27 to 1, she pointed out: “I would suggest that macho, beer swilling, posturing at the golf club bar isn’t going to get us anywhere.”

At a time when free trade is increasingly a dirty word, Davidson is also striking in her defence of the single market. As a child, she recalls, every plate of food on the table was there because her father, a self-made businessman, had "made stuff and sold it abroad". 

She attacked the Daily Mail for its front cover branding the judges who ruled against the government’s bid to trigger Article 50 “enemies of the people”. 

When the headline was published, Theresa May and Cabinet ministers stressed the freedom of the press. By contrast, Davidson, a former journalist, said that to undermine “the guardians of our democracy” in this way was “an utter disgrace”. 

Davidson might have chosen Ukip and the Daily Mail to skewer, but her attacks could apply to certain Brexiteers in her party as well. 

When The Staggers enquired whether this included the Italy-baiting Foreign Secretary Johnson, she launched a somewhat muted defence.

Saying she was “surprised by the way Boris has taken to the job”, she added: “To be honest, when you have got such a big thing happening and when you have a team in place that has been doing the preparatory work, it doesn’t make sense to reshuffle the benches."

Nevertheless, despite her outsider role, the team matters to Davidson. Part of her electoral success in Scotland is down the way she has capitalised on the anti-independence feeling after the Scottish referendum. If the UK heads for a hard Brexit, she too will have to fend off accusations that her party is the party of division. 

Indeed, for all her jibes at the Brexiteers, Davidson has a serious message. Since the EU referendum, she is “beginning to see embryos of where Scotland has gone post-referendum”. And, she warned: “I do not think we want that division.”

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.