The letter that these customers sent was designed to inform Ofgem that over 48,000 people had signed a petition calling for £4bn of “accidental” excess profit to be returned to energy customers. This profit wasn’t earned, there was a mistake in Ofgem’s formula, which they acknowledge, which linked network costs to inflation, so when we had huge inflation in 2022-2024, network operators got way more profit than they were meant to. £4bn worth of extra profit to be exact, so we’re simply asking Ofgem to give us back the extra. This works out to an additional £130 per household across the UK, and all of it comes from standing charges, so it should be easy to give back!
Anyway, by 24 June, we’d grown tired of waiting, so we contacted our local MPs to complain that Ofgem wasn’t responding to customer queries. Around 100 people got involved with emailing their local MPs, at looks like this had an impact on Ofgem who ended up sending a reply to everyone 14:48 on 1 July, finally.
All of the communication in this conversation with Ofgem is below, the final two parts being the message sent by Ofgem on 1 July followed by my reply sent on 7 July (this afternoon). If you have any questions or comments on the below, please email me at Richard@TheRegulatorGuy.co.uk.
