Ofgem to get stronger powers under reform plans

Energy regulator Ofgem is to be given stronger powers under reforms set out by the Government.

In the first major update to Ofgem’s scope since the regulator was founded in 2000, it will be able to enforce consumer law directly and ban bonuses if energy company leaders break the rules.

Its remit will also be streamlined to focus on its core functions as an economic and consumer protection regulator.

The Government said since Ofgem was established the market has grown more complex, with a wider range of products and services and growing numbers of customers in parts of the market which are covered by little or no regulation. 

Minister for Energy Consumers Martin McCluskey said: “We’re making the market work for those who use it, working with the regulator to make sure customers are put first.”

Interim Ofgem CEO Tim Jarvis welcomed the planned reforms and said: “This review sets out ambitious, necessary reforms that will enable Ofgem to meet the challenges of regulating an increasingly electrified and flexible energy system and protect consumers so they can engage confidently in markets offering new products and services.”