Ofgem is failing us

Ofgem is failing us in its duty to protect consumers, as its main focus is on ensuring healthy profits for energy firms. 

Ofgem is the Office of Gas and Electricity Markets, the UK’s independent energy regulator. Its statutory duty is to “protect consumers and promote a fairer and greener energy system”.

During the energy crisis when millions of us were suffering without heating or deep in energy debt, Ofgem decided to give energy retailers an extra £2 billion, which led to huge profits and bonuses at energy firms like British Gas. It came to light in February 2025 that it had also handed network operators a £4 billion windfall.  

Another expensive Ofgem fiasco during the energy crisis was the collapse of many of the opportunistic start-up energy firms which Ofgem had allowed to gamble with our money on the volatile energy markets. Worse still, it allowed shareholders of bankrupt firms to walk away with valuable assets worth millions of pounds, whilst we picked up the bill through a hike in the the standing charge!

Ofgem has allowed many energy injustices to continue for many years:

• Standing charges
• Forced installation of prepayment meters (PPMs)
• Premium (higher) rates for those without direct debits
• Price discrimination against those without smart meters or electric vehicles (EVs). 

They have enormous resources funded by our taxes, and run endless meetings and consultations, but fail to protect us from profiteering energy firms.

Ofgem has also allowed energy firms to consistently fail in their basic role of delivering accurate energy bills. Many of us have been hit with bills that are obviously wrong, then our bank accounts are drained or we are threatened with debt collectors or our homes broken into to install a PPM. We then spend months fighting to have our wrong bill corrected. Those who are unable to fight often end up paying a wrong bill. Others take their fight to the Energy Ombudsman. 

Sometimes companies are engaged in blatant extortion that breaks their license conditions, but Ofgem lets these firms continue to operate and inflict misery on millions of us. Their relationship with energy firms is too cosy, with staff moving between energy firms, the regulator and the Government.

The new Government has promised reform of Ofgem to address failings and make it a real “consumer champion”. But an Ofgem charm offensive since the 2024 General Election is clearly aimed at persuading Labour ministers that the issue is not Ofgem failures and regulatory capture by energy profiteers, but instead a lack of power. We are not fooled, nor are our allies and supporters who have signed a petition and written letters to the Government. Genuine reform of Ofgem is needed now.