Source · Select Committees · Business and Trade Committee
Recommendation 10
10
Not Addressed
Paragraph: 57
We further call on the Government to review whether regulators such as Ofgem should be...
Recommendation
We further call on the Government to review whether regulators such as Ofgem should be given new powers to bring enforcement action for unfit conduct by energy company directors given the very limited scope for The Insolvency Service to do so. We consider this to be particularly important for energy supply companies given the handling of customer monies and the importance of security of supply.
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Response discusses why they are not replacing standing charges with a volumetric alternative based on usage.
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Paragraph Reference:
57
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
BEIS maintains a regular dialogue with Ofgem to review lessons learned and understand where policies can be enhanced to improve outcomes. It is crucial that any energy company directors who have engaged in unfit conduct are held to account by the relevant authorities. We will continue to work with Ofgem and relevant bodies to understand if there are any gaps within the current regime which prevent unfit conduct by energy company directors being appropriately addressed. The UK benefits from a strong enforcement regime, where corporate misconduct is tackled robustly. The Insolvency Service has broad enforcement powers to tackle director misconduct, which can lead to disqualification action or criminal prosecution. These powers extend across all UK business sectors. Any disqualification will prevent the individual from acting as a director or being otherwise involved in the management of a company across the whole economy, not just the sector where the failed company operated. These powers do not only relate to insolvent companies; disqualifications can be obtained in respect of directors of live companies where investigations indicate misconduct. As at 31/3/22, there were over 6,500 individuals with active disqualifications against their name.
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