Bonus ban for failing fat cat energy bosses under new shake-up of watchdog Ofgem

Bonus ban for failing fat cat energy bosses under new shake-up of watchdog OfgemEnergy chiefs could be barred from receiving payouts under new powers being handed to the industry regulator in moves design to better protect customersCommentsMoneyGraham Hiscott Business and Consumer Editor00:01, 22 Apr 2026View 2 ImagesEnergy executives found to have caused frustrated bill payers significant harm could be blocked from receiving bonus rewards(Image: Natalia Gdovskaia via Getty Images)Energy firms will be banned from handing bonuses to failing fat cat bosses under a government shake-up.‌Regulator Ofgem will get the power to prevent executives netting windfalls if they breach existing licence conditions in a way that is seen to significantly harm consumers. The move will need legislative change‌It is part of an overhaul of Ofgem designed to ensure it works harder for billpayers. The regulator has been accused of not coming down hard enough on energy firms in the past while households and businesses saw prices surge. It comes amid pressure on the government to do more to help households in the face of an energy shock caused by the Iran war.‌Rather than scrap Ofgem, Labour’s response is to hand it new beefed-up responsibilities to “act as a true consumer champion”. It marks is the first major update to Ofgem’s scope since the regulator was founded in 2000.View 2 ImagesEnergy Secretary Ed Miliband says new powers for Ofgem will "strengthen protections for energy consumers"(Image: Dan Kitwood, Getty Images)It will be given stronger powers to enforce consumer law directly, meaning it will no longer need to go through a lengthy courts process to make sure customers get what they are owed if companies treat them unfairly. And reforms to the regulator’s remit mean it can regulate in new areas of the market, if needed.‌The overhaul will also see Ofgem lose its oversight of home upgrade schemes. This will instead be coordinated within government by the Warm Homes Agency....