Ecotricity chief slams OFGEM price control proposals

Ofgem yesterday set out its proposed price control settlements for five of the six companies that run Britain’s local electricity network, which transports energy into homes and businesses.

But, one of the Britain’s leading, green energy suppliers, Ecotricity founder Dale Vince – today highlights the ‘incredible’ profits being made by these electricity distribution companies that operate as a monopoly.

Dale Vince 1Vince said:

“The whole set-up with the electricity distribution companies is wrong for consumers – they are monopolies that are privately owned, mainly by foreign banks and pension funds, charging Britons to use infrastructure that we used to own and generations of us paid to build in the first place.

“Much of this money from our energy bills now leaves Britain to pay dividends to mostly foreign shareholders instead of being reinvested in better networks and services.

“Ecotricity wrote to the regulator Ofgem 18 months ago highlighting the incredible level of profits these wire companies were making, 50% before tax, and the massive dividends being paid to mostly foreign shareholders. It’s been a licence to print money.

“Along with the Big Six and more recently some independent energy suppliers, they’ve been running rings around Ofgem since privatisation.

“This new settlement may reduce the profiteering, but the proof of that and whether this really is a better deal for consumers and for Britain, will be whether those huge profits and dividend payments continue in the years to come, only time will tell.

“The real solution though is not a periodic haggle with these distribution companies, but taking the sector back into public ownership. Privatisation has simply failed to deliver.”


Get Ofgem’s proposals in full go to consumers

Have your say on the Scottish Energy News twitter channel: @ScotEnergyNews

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed