Source · Select Committees · Business and Trade Committee
Recommendation 6
6
Acknowledged
Paragraph: 45
We call on Ofgem to make full and proper use of its enforcement and compliance...
Recommendation
We call on Ofgem to make full and proper use of its enforcement and compliance powers to clamp down on rule breaking by suppliers, particularly relating to customer service standards. Ofgem should work with the Government to ensure it has the necessary complement of qualified staff working on its enforcement and compliance teams. We ask Ofgem to provide us with a detailed strategy on how it will improve its enforcement and compliance activity to effectively protect customers, and the timelines within which this will be achieved. We expect that from this financial year onwards, and on an annual basis, Ofgem provides a memorandum to this Committee, which includes a breakdown of the allocation of its resources and a summary of the enforcement and compliance action it has taken in response to rule breaking by energy suppliers.
Government Response Summary
Ofgem has begun to consider the new powers that would be of benefit to consumers, including enforcement for unfit directors, the ability to appoint a third party to operate an energy supplier, the power to act against the parent company of a licensee, and making it quicker and easier to revoke a licence.
Paragraph Reference:
45
Government Response
Acknowledged
HM Government
Acknowledged
Ofgem has begun to consider the new powers that would be of benefit to consumers. It is considered that there is value in exploring the following additional powers: • Enforcement for unfit directors • The ability to appoint a third party to operate an energy supplier • The power to act against the parent company of a licensee • Making it quicker and easier to revoke a licence