A non-executive director at energy regulator Ofgem has quit over changes to the way the energy price cap is set. Christine Farnish said she felt the regulator had not 'struck the right balance between the interests of consumers and interests of suppliers'.
Ms Farnish told The Times she disagreed with a decision to change the cap to enable suppliers to recoup certain wholesale costs sooner – a measure the regulator has said would prevent more suppliers going bust. Ofgem, which sets the cap every three months, thanked her for her service.
An Ofgem spokesperson defended the change, saying: 'Due to this unprecedented energy crisis, Ofgem is having to make some incredibly difficult decisions where carefully balanced trade-offs are being weighed up all the time. But we always prioritise consumers' needs both in the immediate and long term.' The regulator added that the shorter recovery period for energy costs reduced the risk of supplier collapses, which would add more costs to bills.
Consumer rights campaigner Martin Lewis has previously accused the regulator of 'selling consumers down the river'. The October price cap is due to be announced at the end of this month, with predictions from Cornwall Insight that the average annual bill will reach £3,582 – £200 higher than previous estimates. By January 2023, the cap is expected to rise to £4,266, meaning households could pay £355 per month compared to £164 currently.
Energy prices have surged due to increased demand after Covid restrictions eased and the war in Ukraine threatening Russian gas supplies. The government's business department acknowledged the resignation, saying it had been accepted.
