Rogue UK energy bosses and brokers face crackdown on mis-selling
Rogue UK energy bosses and brokers will face curtailed bonuses under a new crackdown on mis-selling practices that have overcharged businesses and households.
Through the energy independence bill to be introduced on Wednesday, Ofgem will gain new powers to order compensation, impose fines, and ban rogue operators that have pushed businesses and households into overpriced contracts. The move targets energy brokers and price comparison services, which have largely operated without regulation despite their significant influence on business energy supply contracts.
Hidden Commissions
The government has identified that rogue brokers have been pushing small businesses into overpriced energy contracts while pocketing hidden commissions, leaving companies paying more than necessary. Bringing these intermediaries under Ofgem's remit is expected to save businesses more than £100m annually from such practices.
People work hard for their money. They shouldn't be ripped off by energy companies or forced to fight for fair treatment when things go wrong.
Executive Bonuses
The watchdog will also be given powers to crack down on payments to bosses who have "rewarded themselves while customers suffer." This follows public outrage over huge bonus payouts to executives despite investigations into the treatment of vulnerable customers.
The energy secretary emphasized that when energy bosses fail their customers, they shouldn't be "walking away with bumper bonuses while families and businesses pick up the bill."
Energy Efficiency
As part of the new bill, local authorities will be granted stronger powers to tackle landlords who fail to meet energy efficiency standards, including fines of up to £30,000. This builds on existing regulations since 2020 that have made it illegal to let properties with energy performance certificate ratings below E, unless the landlord can show exemption.
Fracking Ban
The government will also introduce a moratorium on fracking by ending new onshore licensing in England. The controversial technique, which involves pumping liquid underground at high pressure to crack rock and release trapped oil or gas, has been linked to earthquakes and water contamination fears.
The ban reverses the decision by Liz Truss in 2022 to overturn a previous Conservative government ban from 2019. However, the moratorium will not include lower-volume fracking operations or "proppant squeeze," which the fracking industry claims is not a form of fracking.
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