UK energy bill would expand Ofgem powers over brokers and executive bonuses

The UK government plans to give Ofgem wider enforcement powers through its energy independence bill, due to be introduced on Wednesday, the Guardian reports. The measures would allow the regulator to order compensation, levy fines and ban operators over mis-selling, while curbing bonuses when energy suppliers and brokers breach rules.

Energy brokers and price comparison services would enter Ofgem’s remit. Ministers say hidden commissions and unsuitable contracts have inflated costs for small businesses, and estimate the changes could save businesses more than £100m annually. The bill would also strengthen councils’ enforcement of rental energy-efficiency standards, including fines of up to £30,000, and end new onshore licensing in England as part of a fracking moratorium.

Businesses often rely on brokers to arrange energy supply contracts, yet these intermediaries remain largely unregulated, unlike those selling mortgages or insurance, according to the report. Bringing them under Ofgem would address that oversight gap. The stated savings are an estimate, not demonstrated results from measures already in force.