This week on the Kiran Trivedi
blog I ask what the recent news that the energy market is over regulated means
for your personal finances.
Energy Bills Just Keep on Going Up!
I regularly talk about the impact
of energy bills on your personal finances. If you are looking to live on a
budget, you’ll have zero chance of success if you don’t think about how much
you need to pay for electricity, gas etc. every month.
But as of late, that hasn’t been
easy. It seems that energy bills in the UK have been constantly rising over the
last few years. This means that not only are energy expenses putting more
pressure on your personal finances than ever, but they are harder to predict.
Consequently, this makes it
harder to budget for energy expenses, further effecting your personal finances.
That’s why I thought you Kiran Trivedi readers would be interested to know that
the reason you are paying high energy bills could be because there is too much
red tape in the energy market.
Energy Regulation since 2008 Too Aggressive?
According to the BBC, five former
regulators went on record last week suggesting that too much regulation could
have stopped competition among energy suppliers, in turn keeping energy prices
high for households across the UK.
Specifically, they suggested that
regulation since 2008 has been too aggressive. This conclusion comes in light
of recent Ofgem findings, which suggest that energy suppliers have been able to
continue to raise their prices, free from any competitive pressure, even whilst
wholesale prices were falling.
Ofgem Responds to Regulator Criticism
Ofgem responded to the criticism,
saying it would pay “close attention.” However the regulator went on to deny
that things were fine before 2008, but took a turn for the worse when after the
date they adopted a more interventionist approach.
A spokesman for Ofgem said: "Many
of the current problems with retail competition in the energy market were
showing before 2008 and the regulatory and policy environment has changed
significantly since then."
Switch to a Low Cost Energy Supplier
So is more regulation the reason
your energy bills are so high? Maybe, I’m not sure yet. What I am sure of Kiran
Trivedi readers, is that the Big Six energy companies provide poor value formoney. That is why I would suggest that if you’re looking to protect your
personal finances, you switch to a low cost energy provider today!
If you wish to talk to Kiran Trivedi about my articles or just chat about finance, you can contact me here.
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