Labour to reform Ofgem to give more protections after energy bills crisis
Households will be offered more protections and better customer service from energy providers as part of plans by the Labour government to reform the regulator Ofgem.
The watchdog could get new consumer-facing powers including shortening the eight-week mandatory response time when people complain to their energy supplier.
Customers could also get better access to automatic compensation when things go wrong with their energy bills.
Ministers say they want to rebuild trust in the sector after energy price spikes in 2022 led to soaring bills and caused a swathe of smaller suppliers to go bust.
Larger companies have faced accusations of profiteering off the sharp increase in wholesale costs caused by Russia’s invasion of Ukraine.
Many of the biggest energy companies that provide heat and electricity to British homes have reported record profits in recent years.
Energy Consumers Minister Miatta Fahnbulleh said the government has "learned from the energy crisis" and added, "bills are still too high".
Fahnbulleh said: "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."
She said the review of Ofgem would also "set it up for the transition to net zero".
In November Ofgem announced the energy price cap would rise by 1.2% in January, the second in a matter of months after a 10% hike was announced in October.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
Although down from their peak in 2022, energy bills are still at very high levels when compared to the previous 10 years.
Officials said the Ofgem reforms would focus on improvements to the bill-paying and complaints process.
The review will also look into how Ofgem can address wider issues like making homes more energy efficient with things like heat pumps and solar panels.
Ofgem chief executive Jonathan Brearley welcomed the review, adding that “a great deal” has changed since the regulator’s remit was set out 25 years ago.
He said the recent crisis was “an important reminder to all that protecting consumers must remain the focus no matter what challenges we face”.
Labour set out sweeping plans for how it will decarbonise the grid by 2030 earlier in December.
They include measures to speed up planning decisions on clean energy projects and free up the queue for projects to get a connection to the grid, which is currently seeing some schemes held up for years.
Ministers want to significantly increase how much home-grown renewable energy the UK uses.
Subscribe free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning.
It has been pitched as an attempt to cut dependence on foreign gas imports, which contributed to spike in energy prices in 2022.
The review of Ofgem will also examine the regulator’s role in approving new infrastructure projects like wind and solar farms, and in bringing down the grid queue.
Labour has faced criticism in recent months for restricting winter fuel payments to those receiving pension credit.
It means around 10 million people will lose out this winter, with the benefit taken away from all but the poorest pensioners in the country. About 11.5 million people used to receive it.
Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...