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| Ofgem boss: I'm sorry for failing vulnerable consumers | Ofgem boss: I'm sorry for failing vulnerable consumers |
| (35 minutes later) | |
| Dermot Nolan, the chief executive of energy regulator Ofgem, has apologised for failing vulnerable consumers. | Dermot Nolan, the chief executive of energy regulator Ofgem, has apologised for failing vulnerable consumers. |
| "We could have done better, and should have done better, for vulnerable customers," he told MPs on the Business and Energy Committee. | "We could have done better, and should have done better, for vulnerable customers," he told MPs on the Business and Energy Committee. |
| Asked whether he wished to apologise to them, he said, "I do." | Asked whether he wished to apologise to them, he said, "I do." |
| However, he added that such customers would benefit from the forthcoming price cap on standard variable tariffs (SVTs). | However, he added that such customers would benefit from the forthcoming price cap on standard variable tariffs (SVTs). |
| As many as 56% of households - around 11.5 million consumers - are still on SVTs, which are significantly more expensive than fixed-term deals. | |
| MPs on the Business and Energy Committee are examining the government's draft plans to cap such tariffs. | MPs on the Business and Energy Committee are examining the government's draft plans to cap such tariffs. |
| 'Not passive' | 'Not passive' |
| Mr Nolan was also accused of being too passive as a regulator. | Mr Nolan was also accused of being too passive as a regulator. |
| "I do not seem passive," he replied. "We are rolling our sleeves up very strongly." | "I do not seem passive," he replied. "We are rolling our sleeves up very strongly." |
| But he said he regretted that price controls had not been imposed earlier. | But he said he regretted that price controls had not been imposed earlier. |
| "I wish we had acted earlier in putting a price cap in place for vulnerable consumers," he said. | "I wish we had acted earlier in putting a price cap in place for vulnerable consumers," he said. |
| From next month, a million poorer consumers will see their bills reduced by a price cap, and a further two million will benefit by next winter. | From next month, a million poorer consumers will see their bills reduced by a price cap, and a further two million will benefit by next winter. |
| The poorest households on pre-payment meters already have their bills capped. | The poorest households on pre-payment meters already have their bills capped. |
| Savings | Savings |
| However, many in the industry, including one former regulator, have said a cap could reduce competition. | However, many in the industry, including one former regulator, have said a cap could reduce competition. |
| Stephen Littlechild was the electricity regulator in the 1990s. | Stephen Littlechild was the electricity regulator in the 1990s. |
| Writing in the Daily Telegraph on Wednesday, he suggested a better solution would be for each of the big six energy suppliers to give up 10% of their customer base, which could be sold off to new entrants in the market. | Writing in the Daily Telegraph on Wednesday, he suggested a better solution would be for each of the big six energy suppliers to give up 10% of their customer base, which could be sold off to new entrants in the market. |
| Three of the biggest suppliers have already said they plan to end SVTs anyway. | Three of the biggest suppliers have already said they plan to end SVTs anyway. |
| British Gas will stop selling SVTs to new customers by April, and those coming off cheaper fixed-price deals will no longer be automatically transferred to an SVT. | British Gas will stop selling SVTs to new customers by April, and those coming off cheaper fixed-price deals will no longer be automatically transferred to an SVT. |
| SSE and E.On have announced similar plans. | SSE and E.On have announced similar plans. |
| The proposed price cap is due to last until 2020 in the first instance, but could be extended to 2023. | The proposed price cap is due to last until 2020 in the first instance, but could be extended to 2023. |
| However, it is not yet known when it will begin. | However, it is not yet known when it will begin. |
| Ofgem has said consumers will save up to £120 a year when their bills are capped. | Ofgem has said consumers will save up to £120 a year when their bills are capped. |