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Campaigning Pensioners Call For Action from Ofgem

The Scottish Pensioners’ Forum, the campaigning organisation for older people in Scotland, today applauded the decision of OFGEM non-executive director, Christine Farnish, to resign from the board, on a matter of principle, as she felt they were “[giving] too much benefit to companies at the expense of consumers.”

According to energy campaigners, Ofgem is currently presiding over a shambles. Due to its failure to scrutinise the finances of approximately 30 energy supply companies’ pre-licence, these companies have since gone bust, leaving consumers to pick up the bill whilst allowing millions of pounds in profits to be syphoned off by their directors.

Energy consumers in Scotland already suffer higher energy costs than anywhere else in the UK, yet they now face quarterly increases to their bills. According to an OFGEM spokesperson this is due to the “very real risk of suppliers going bust, which would heap yet more costs onto bills”

Rose Jackson, SPF Chair commented:

“It is a ridiculous situation that consumers should pay for the failure of suppliers who generate nothing but a culture of fear surrounding rising energy bills.

“At a time when consumers are generally facing massive hikes in their energy costs, many Scottish pensioners are facing the stark choice between eating and heating this winter.

“Britain is lauded as one of the world’s largest and most stable economies, yet it cannot secure basic necessities for the most vulnerable people in society.

“According to Ofgem’s own research in 2014, almost 80% of Scots were rationing their winter energy use and prices were nowhere near those predicted over the next few months – the consequences of this crisis are going to be catastrophic for so many.

“Money expert, Martin Lewis, was right when accusing Ofgem of having sold consumers down the river! The organisation has failed to protect the interests of customers, preferring to insulate the fat cats in their boardrooms instead.

“Ofgem has lost its focus and we sincerely hope that other members of the board follow the example set by one of their own and take off their rose-tinted glasses over the whole situation. Only then will things change!”