GMB, the union for energy workers, has called for Ofgem to be scrapped and the government to take over as the regulator accountable to parliament after the new proposals from Ofgem.

Earlier in the month, the UK energy regulator set out its approach to the recommendations of the Competition & Market Authority (CMA), stating that they will deliver a fairer and more competitive energy market for consumers.

The two year investigation carried out by the CMA came to a close last month and found that the vast majority of households are not interested and paying over the odds for their energy in comparison to those who have switched tariff.

The recommendations are trying to free up competition and encourage market innovation to reduce customer bills and make the service better for everyone, not just a minority.

Dermot Nolan, Chief Executive at Ofgem, commented: “The CMA’s final report is a watershed moment for industry and consumers and points the way to a fairer and more competitive future. I call on energy companies and consumer groups to seize this opportunity.”

However, GMB says that it is not convinced and believes that the government should not duck decision making that is required to keep the lights on and ensure the sector gets decarbonised.

GMB National Secretary for Energy, Justin Bowden, said: “Here we go again with more Ofgem tinkering over the pretence that a free market is possible in this sector.”

Bowden added that the organisation should be abolished and the government itself should be responsible for industry regulation, meaning that both are accountable to parliament.

He also believes that the government should have the power to limit profit levels and cap prices when necessary to run and finance power stations.

Meanwhile, GMB and Unison are set to consult their members before a fresh round of leadership endorsements.