Calls mount for Ofgem overhaul

A Labour MP has called for Ofgem chief executive Jonathan Brearley to be relieved of his duties amid growing calls for a shake-up at the regulator.

Pressure continues to pile on government to introduce tighter regulatory oversight in light of the energy crisis.

In the first oral questions since government formed the Department for Energy, Security and Net Zero (DESNZ), secretary of state Grant Shapps defended the work of Ofgem after Labour’s Richard Fuller called for for sweeping changes to how the regulator operates.

Fuller asked “what on earth” Ofgem had been doing after blunders relating to the price cap and its market entry strategy, which he likened to allowing energy companies “to basically put all of their customers’ money on red in a casino”.

Fuller said the time had come for government to intervene.

“Can we have more from government than to look at non-executive directors? Surely the time to ask why is the chief executive remaining in post?” Fuller said.

He called on Shapps to ensure better oversight of Ofgem and other regulators that he said were “getting away with ripping off consumers and allowing companies to do the same”.

Pressure has mounted on Ofgem and government including previous calls for Brearley to resign over the prepayment meter scandal uncovered by The Times.

Shapps said the department would continue to meet with Ofgem’s chief executive and call out the regulator when there are concerns. He said as the review into the market is undertaken, government will continue to ensure that whatever happens will be appropriate for the market.

In the same session, Shapps assured MPs that he “absolutely shared the level of concern” regarding prepayment meters being enforced on customers.

He said that the government “will ensure we don’t go back to those bad old days”, but refused to confirm if higher charges would be addressed before the ban on installations was lifted at the end of March.