Rees-Mogg accused of grabbing absolute power over UK energy industry
The business secretary, Jacob Rees-Mogg, has been accused of launching a “power grab” as new legislation proposes to hand sweeping control over the energy industry to the government.
The government last week introduced the energy prices bill to parliament to formalise the energy price guarantee, Liz Truss’s flagship policy to reduce household bills by limiting the cost of electricity and gas for two years.
However, the Guardian understands that energy suppliers have raised concerns with the business department that the legislation contains proposals for the government to be able to effectively overrule Ofgem, the sector’s independent regulator.
The draft legislation proposes to hand “power of the secretary of state to modify energy licences” as well as the “power of the secretary of state to give directions”.
Ofgem is responsible for overseeing every element of a supplier’s licence, from ensuring vulnerable customers are correctly handled to rules governing smart meters.
If approved in its current form, the legislation could override the authority of Ofgem. The regulator has been bruised by the energy crisis after its efforts to increase competition were undermined as more than 30 suppliers went bust when gas prices rapidly escalated.
The Lords are expected to discuss the main principles and purpose of the bill at a second reading of the legislation on Wednesday. Energy companies are also unhappy that they were given little time to examine the legislation.
Dhara Vyas, the director of advocacy at Energy UK, said:“It’s astonishing that the government gave the energy industry just 24 hours to respond to a draft bill which unexpectedly proposes giving ministers broad and seemingly unlimited new powers over the regulation of the
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