Energy watchdog boss vows less ‘heavy handed’ approach to regulating suppliers

The boss of Ofgem has said he wants to be less “heavy handed” in policing energy firms, including only taking enforcement action in “serious cases” of companies failing customers.

Jonathan Brearley said he wants to take a “proportionate, intelligent” approach to regulating customer issues in the coming years.

He said: “The fact is that over the last few years Ofgem has had to intervene in light of poor services and poor practice for some suppliers.

“However, I also recognise that at times, our past approach has been unwieldy, potentially heavy handed and bureaucratic.”

Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe. When issues arise, the sector needs step up and deal with them at pace

But he added that firms need to “do more than the regulatory minimum” in return.

That includes by providing faster redress payments for issues like poor smart meter installation services or incorrect billing.

He said: “Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe.

“When issues arise, the sector needs step up and deal with them at pace.”

Mr Brearley was giving his first speech since being reappointed as chief executive of the energy regulator for a second term until 2030.

It comes weeks after Rachel Reeves told watchdog chiefs there is “too much bureaucracy” in the UK which is making it “too slow to get things done”.

The Chancellor has vowed to cut red tape and reduce the financial burden of regulation for businesses by 25% by the end of the parliament.

Mr Brearley said on Tuesday: “We want to change the way we regulate the retail market to make it clearer what outcomes we seek, where there are minimum standards, and what will be left to the market.”

He called for “faster, more direct redress” payments when companies do not meet new minimum standards on smart meter installation.

Where wider customer problems occur, he said Ofgem would do “early work with companies seeking swift resolution”.

“And reserving enforcement for serious cases only, with a robust response if rules are systemically breached.”

It comes after the Government kicked off a wide-ranging review of Ofgem last year, saying the watchdog was not “fully equipped” to protect customers.

The regulator has faced criticism for not sufficiently protecting consumers from supplier failures during the energy crisis in recent years, and has brought in new rules to try to make existing suppliers more financially resilient.

The chief executive said on Tuesday that he hoped to see the regulator take on a wider scope under any future reforms, to better regulate new sources of energy like solar panels, batteries and electric car chargers.

He also said he wants Ofgem to have more oversight over the role of artificial intelligence in the energy sector.

He said: “The scope of the sector we regulate will change, and potentially quite quickly. Therefore, the scope of the regulator should be able to adapt quickly also.”