The UK government has announced plans to undertake a comprehensive review of energy regulator Ofgem.
The review aims to strengthen the energy regulator to support consumers and protect households from poor service, and help it support growth and innovation in the energy sector.
The government said that rising energy costs in 2022 and bad practice by some suppliers had damaged confidence, and that Ofgem is no longer fully equipped to protect consumers.
Minister for energy consumers Miatta Fahnbulleh said: “We have listened to people’s concerns and learned from the energy crisis. We will ensure that working people have access to the best possible support to choose more affordable, smarter, clean energy that is right for them.
“The review of Ofgem will set it up for the transition to net zero and establish it as a champion for households and businesses by fixing the broken energy market and putting consumers first.”
Proposed new measures to enhance Ofgem’s consumer protection powers will include shortening the eight-week response time for complaints and strengthening the energy ombudsman.
The review will also examine Ofgem’s role in approving new infrastructure projects and improving the connections process, ensuring that the regulator plays a key role in fostering growth and delivering the government’s clean energy mission.
The government will also investigate strengthening and expanding automatic compensation, simplifying the framework for compensation, which currently varies across issues and areas of the energy market.
Ofgem CEO Jonathan Brearley said: “Ofgem welcomes this review. A great deal has changed since our remit was set 25 years ago, and will continue to change as we move to new ways of generating and using energy. The energy crisis served as an important reminder to all that protecting consumers must remain the focus no matter what challenges we face, so that every household receives the service and support they rightly expect.
“We have already made significant reforms to stabilise the market, drive investment in our infrastructure, and begin to improve standards, however we know more can be done with more powers. We’re committed to keeping consumers at the heart of everything we do, and working together with government, industry, and consumer groups and charities to shape a future energy and retail market that delivers for everyone.”
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