RAPID RESPONSES
Smart and simple
[Re: The energy policy paradox: cheap tariffs for the savvy mean higher bills for most, yesterday]
Will Straw is right to highlight the unfair impact of predatory pricing on all energy bill payers. Ofgem clearly needs to look at this issue, particularly as the most vulnerable members of society are likely to pay the highest energy prices. As he correctly says, greater competition in the energy market is key to solving this problem. However, the energy regulator’s wider plans to simplify domestic energy tariffs could actually undermine the ability of smaller, more innovative energy suppliers to compete. They also assume that small suppliers can easily access wholesale power products, a well-known problem in the industry. The current proposals risk closing the door to innovative domestic tariffs linked to smart meters, nearby wind farms and the type of energy source used to generate electricity. Customers want these products and they will become increasingly important in coming years. The energy regulator must recognise that market simplification and improved competition require the preservation of any innovation that is in the best interest of consumers. Tariffs should be simplified, but in a balanced way that does not compromise this.
Juliet Davenport, chief executive and founder, Good Energy