Cable Forum - View Single Post - Are industry regulators a danger to the public?

Vlad_Dracul · 01-02-2007, 16:01

I am sure we are all aware of industry regulators. They all have similar sounding names such as Oftel,Ofwat,Ofgas,Ofgem etc.

Industry regulators were first created as the champions of the people. They would beat these big companies into submission, the ones who had supposedly been ripping off the public for years. The baying public mobs were only to ready to give their support. But where are we now? In many cases the industry regulators have not been content to keep a watchful eye of big industry and to work with such industries in the best interests of the consumer.

The situation we have now is that such industry regulators are all powerful and do not actually work with industry in a co-operative sense. Their role now is one of the all powerful dictator which actually tells industry what to do.

Take for example OFGEM

http://www.ofgem.gov.uk/ofgem/index.jsp

OFGEM regulates the Gas and electricity industry.

In the gas industry, they have a periodic review, usually every five years, at which time, and after some deliberation, OFGEM tells the industry how much it is allowed to spend to operate in the coming years. Every time that a review has taken place, that review has said that they must cut costs and they specify exact figures.

So then, despite the fact that everything always goes up in price ie materials,labour costs etc. OFGEM continually expects industry to cut its costs by a significant amount all the time. The industry cannot argue back. They tried in the early days and lost so now they just doff their corporate caps and get on with it. Inevitably the only way they can make those cost savings is by cutting.

So year upon year upon year since privatisation of British Gas, there have been cuts cuts cuts and more cuts,all enforced by ~OFGEM.

What we are talking about here is the bit of the gas industry that deals with Gas distribution i.e pipes in the ground,and the gas emergency service. The person who will turn up 24/7 whatever the weather to save you in a crisis.

About five years ago there was a crisis. There were a series of big gas explosions and fatalities. Obviously there had been too much cutting and too little investment and the balance had tipped too far. Articles appeared all over the press and people began to wonder how this could happen. The Regulator authorized a great wadge of spending to save things (and maybe themselves)

Time is a great healer,memories fade and again we are seeing some incredibly swinging cuts. For example,National Grid has just been told that it must cut its operating costs by over 30% in the coming few years. This is a phenomenal amount and I firmly believe that the public are now being put at greater risk because of such financial pressures.

Other gas networks have received similar cuts.

We are seeing the creation of another railtrack where a responsible industry is being strangled by a regulator which wants everything done as cheaply as possible.

Is cheapest good enough to ensure the safety of you,your home and your family?

01-02-2007, 16:01	#1
Vlad_Dracul cf.mega poster Join Date: Apr 2004 Location: Wherever I lay my hat, thats my home... Services: Dispensing wit and wisdom in so far as I am able . P3 500Mhz/ 2Mb BB when it works,no Tv,n Posts: 1,046	Are industry regulators a danger to the public? I am sure we are all aware of industry regulators. They all have similar sounding names such as Oftel,Ofwat,Ofgas,Ofgem etc. Industry regulators were first created as the champions of the people. They would beat these big companies into submission, the ones who had supposedly been ripping off the public for years. The baying public mobs were only to ready to give their support. But where are we now? In many cases the industry regulators have not been content to keep a watchful eye of big industry and to work with such industries in the best interests of the consumer. The situation we have now is that such industry regulators are all powerful and do not actually work with industry in a co-operative sense. Their role now is one of the all powerful dictator which actually tells industry what to do. Take for example OFGEM http://www.ofgem.gov.uk/ofgem/index.jsp OFGEM regulates the Gas and electricity industry. In the gas industry, they have a periodic review, usually every five years, at which time, and after some deliberation, OFGEM tells the industry how much it is allowed to spend to operate in the coming years. Every time that a review has taken place, that review has said that they must cut costs and they specify exact figures. So then, despite the fact that everything always goes up in price ie materials,labour costs etc. OFGEM continually expects industry to cut its costs by a significant amount all the time. The industry cannot argue back. They tried in the early days and lost so now they just doff their corporate caps and get on with it. Inevitably the only way they can make those cost savings is by cutting. So year upon year upon year since privatisation of British Gas, there have been cuts cuts cuts and more cuts,all enforced by ~OFGEM. What we are talking about here is the bit of the gas industry that deals with Gas distribution i.e pipes in the ground,and the gas emergency service. The person who will turn up 24/7 whatever the weather to save you in a crisis. About five years ago there was a crisis. There were a series of big gas explosions and fatalities. Obviously there had been too much cutting and too little investment and the balance had tipped too far. Articles appeared all over the press and people began to wonder how this could happen. The Regulator authorized a great wadge of spending to save things (and maybe themselves) Time is a great healer,memories fade and again we are seeing some incredibly swinging cuts. For example,National Grid has just been told that it must cut its operating costs by over 30% in the coming few years. This is a phenomenal amount and I firmly believe that the public are now being put at greater risk because of such financial pressures. Other gas networks have received similar cuts. We are seeing the creation of another railtrack where a responsible industry is being strangled by a regulator which wants everything done as cheaply as possible. Is cheapest good enough to ensure the safety of you,your home and your family?