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They’ve been given the green light to boldly go where no Ofgem spokesperson has gone before. So just what might we expect to hear from a newly-bolstered regulator in the months ahead – and what could it all mean for the sector?
We’ve now learnt how Ofgem’s governing body, the Gas and Electricity Markets Authority, has called on the regulator to be “more transparent” about its compliance and enforcement work and to take a “bolder approach to its communications” about the energy retail market.
And it’s not hard to see why.
It’s been a particularly bruising period for the regulator, presiding over a rocky time for the industry. Several small suppliers have gone to the wall, politicians are still labelling the market “broken”, and consumer confidence appears to be at an all-time low.
Competition may well have arrived, but a flurry of price hikes has failed to deliver the better deals promised. Meanwhile, a temporary government price cap looms, along with any ensuing fallout.
Consultations, notices, market-monitoring reports, and even enforcement actions – while all useful instruments to have in the toolbox – are fairly one-dimensional in terms of a communications strategy. Certainly, the comms coming out from its noisier neighbour Ofwat, led by the unapologetically strident Jonson Cox, have a far more robust tone.
It’s likely no-one is more frustrated at this than Ofgem itself. While its chief executive, Dermot Nolan, is renowned for forcefully speaking his mind in person, his messages are not always reflected in Ofgem’s more formal announcements.
The latest instruction from on high could therefore be music to the ears of an embattled regulator that has tended to adopt a critical but impartial stance.
Just like the energy market, the regulatory mood music has also moved on. Ofgem, it seems, must now not only regulate but be seen to regulate, while also sharing its vision for the future direction of the sector more strongly.
It’s an approach its new chair, Martin Cave, looks bound to embrace when he takes up the reins shortly. The so-called architect of the price cap is no stranger to sticking his head above the parapet. And he will have strong messages to share – having already pledged to do things his way and without political interference.
The industry will be eager to hear them.
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