Jonathan Brearley, head of Ofgem, has urged the government to give the regulator the power to fine senior figures in the energy industry who breach regulations, as households continue to face rising energy bills and poor service.
At present, Ofgem can impose fines on companies in the energy sector, including suppliers and generators, for regulatory failings, but lacks the authority to hold individual executives responsible.
Mr Brearley suggested this should change, drawing attention to the broader powers held by the Financial Conduct Authority, which can penalise executives directly.
In an interview with The Times, Mr Brearley remarked: “Part of the reason I look to the financial industry is because their regulator has a broader range of powers – able to hold executives to account, for example.”
According to Ofgem’s latest survey, public satisfaction with energy companies has dropped, with only 66% of households happy with their energy suppliers, down from 72% before the pandemic.
This dissatisfaction follows cases like OVO Energy, which was recently ordered to pay £2.4 million for poor handling of customer complaints, some of which took up to 18 months to resolve.
Jonathan Brearley also discussed the government’s 2030 target for a decarbonised electricity system.
While he acknowledged the challenges, he remained optimistic: “It is a massive, massive challenge,” he said.
“So do I think there will be no carbon at all in the electricity system, there’ll be no gas at all that’s unabated? I think that’s very hard to see. But do I see a system that is by and large decarbonised, with gas playing a very different role? Absolutely.”
The boss of Ofgem also called on the government to consider a “serious look” at introducing a social tariff to provide vulnerable households with discounts on their energy bills, helping to alleviate the financial pressure of rising costs.
Ofgem announced that the energy price cap will rise by 10% in October, raising the average annual bill for a typical dual fuel household to £1,717.
The increase is due to a recent surge in wholesale energy prices, largely influenced by the UK’s reliance on imported gas and the unpredictability of the global energy market.
