It also said it was its first step to repair Great Britain’s retail energy market and deliver real change for working people in line with its Plan for Change.
The Government added that households had paid the price for the country’s broken energy market, with sky-high bills, suppliers collapsing, and poor customer service during a cost-of-living crisis.
The review will establish Ofgem as a strong consumer champion, with the aim of driving up standards for household and business consumers both now, and as energy use evolves with smarter and greener technology.
There will be a strong focus on delivering improvements to what matters to working people, from paying bills and resolving complaints to upgrading their homes and cutting energy costs with a new boiler, heat pump or solar panels.
The review will also consider how Ofgem can better drive the Government’s missions for clean power and economic growth by supporting the private sector to invest in the energy infrastructure we need and ensuring that families who want to upgrade their homes with clean technology can do so safe in the knowledge that they are protected by robust and responsive regulation.
Minister for Energy Consumers, Miatta Fahnbulleh said:
“We have listened to people’s concerns and learned from the energy crisis. We will ensure that working people have access to the best possible support to choose more affordable, smarter, clean energy that is right for them.
“Energy bills are still too high, and that is why we worked with suppliers to announce £500million of additional winter support. The review of Ofgem will set it up for the transition to net zero and establish it as a champion for households and businesses by fixing the broken energy market and putting consumers first.”
Jonathan Brearley, CEO of Ofgem, said: “Ofgem welcomes this review. A great deal has changed since our remit was set 25 years ago, and will continue to change as we move to new ways of generating and using energy. The energy crisis served as an important reminder to all that protecting consumers must remain the focus no matter what challenges we face, so that every household receives the service and support they rightly expect.
We have already made significant reforms to stabilise the market, drive investment in our infrastructure, and begin to improve standards, however we know more can be done with more powers. We’re committed to keeping consumers at the heart of everything we do, and working together with government, industry, and consumer groups and charities to shape a future energy and retail market that delivers for everyone.”
Proposed new measures to enhance Ofgem’s consumer protection powers will include shortening the eight-week response time for complaints and strengthening the energy ombudsman.
The review will also examine Ofgem’s role in approving new infrastructure projects and improving the connections process, ensuring that the regulator plays a key role in fostering growth and delivering the government’s clean energy mission.
The Government will, in addition, investigate strengthening and expanding automatic compensation.