Ofgem reviews regulation approach

Ofgem is reviewing its approach to regulating the market for the first time in 20 years. The two-year review will question whether its current approach will still benefit consumers in the current climate.

The review will be led by Steve Smith, managing director of its networks division, and he will report to Ofgem chairman Sir John Mogg and the governing board in summer 2010.

Ofgem chief executive Alistair Buchanan says: “We need to know the regime can promote innovation from the companies at the level that it is required for the future.”

The regulator says the energy market faces costly challenges ahead, including proposals for a greater power network connection in Europe and a greater emphasis on small-scale distributed generation, as well as a growth in gas imports.

Energy companies are facing mounting pressure to meet the Government’s green targets and have recently been criticised for their lack of attention to the fuel poor. Five of the “big six” energy suppliers raised their prices this year, by an average of 15%. The Department for Business, Enterprise and Regulatory reform has set up a committee, which is currently investigating the energy market.

Buchanan adds that “mounting influences” may take the existing price control format into “territory for which it was not designed”.

The regulator says that the review should not be taken as critical of the role of existing rules. Buchaman says: “The current regime has delivered much greater efficiency from the network operators, with better quality of service, improved reliability and lower costs to customers.”


Jersey pulls tourism ads over care home inquiry

Marketing Week

Jersey Tourism, the island’s official tourist organisation, has suspended its advertising during the investigation into abuse at a former children’s home. The body says it felt it was ‘inappropriate’ to continue with its campaigns in the UK, France and Germany in light of the discovery of human remains Haut de la Garenne. It says it […]

Pearson reports profits rise

Marketing Week

Pearson, the owner of the Financial Times, has reported positive results for 2007 driven by growth in its digital and subscription revenue at the FT. It has exceeded analysts’ expectations by announcing a 9% increase in pre-tax profits to £549 for the year. The publisher says that every part of the business, which also includes […]

EU directive to ban BOGOF promotions

Marketing Week

Marketers may be banned from using buy one get one free (BOGOF) tactics, when a European Union directive that restricts the use of the word “free” kicks in later this year. The EU Unfair Commercial Practices Directive is laid before the Parliament today (March 3). The Institute of Sales Promotions has warned marketers that the […]


    Leave a comment