Ministers plan to make major changes to give Ofgem new consumer protection powers.
These include a role for the regulator to enforce consumer law directly, meaning it will no longer need to go through a courts process to make sure customers get what they are owed if companies treat them unfairly.
Reforms to Ofgem’s remit to focus on economic and consumer protection and ensure every energy consumer is protected, including the ability to regulate in new areas of the market, such as heating oil and LPG.
Measures to ensure energy bosses are held accountable, with powers for Ofgem to ban their bonuses if they break the rules.
A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government is right to give Ofgem more teeth, a broader role in regulating businesses across the energy sector and a clearer focus on ensuring the energy market works for consumers.
“Stronger enforcement powers, executive accountability and the ability to step in when the market fails are exactly what campaigners have been calling for. But Ministers must be clear that if the duties placed on Ofgem pull in different directions, vulnerable households must always come first.
“And of course, stronger regulation alone will not pay anyone’s energy bill. As part of the reforms, Ministers must stand ready to direct Ofgem to help bring down bills. This could mean delivering a social tariff for vulnerable customers, recovering excess network profits or tackling gas network ownership, market structures and technical processes that have for too long helped to skew the energy system in favour of energy giants.
“We look forward to working with ministers and officials to ensure that the new arrangements deliver for the millions of people who still cannot afford to heat their homes.”