Rogue UK energy bosses and brokers face crackdown on mis-selling
Exclusive: Ofgem to be given powers to issue fines and rein in bonuses for executives who ‘reward themselves while customers suffer’ Energy bosses in the UK will have their bonuses curtailed when suppliers and brokers break the rules under a crackdown on mis-selling. Through the energy independence bill, which will be introduced on Wednesday, Ofgem will be given new powers to order compensation,…
The UK government is preparing to introduce new regulations aimed at curbing mis-selling in the energy sector. Ofgem, the energy regulator, will receive enhanced powers to fine executives and limit bonuses for those who "reward themselves while customers suffer." This crackdown targets rogue brokers and energy middlemen who have exploited small businesses by pushing them into overpriced contracts, often pocketing hidden commissions in the process.
The move is expected to save businesses over £100 million annually by eliminating hidden commissions and addressing mis-selling practices. Energy Secretary Miatta Fahnbulleh emphasized that customers should not be ripped off by energy companies or forced to fight for fair treatment when issues arise.
The new bill, announced in the king's speech, will also give Ofgem authority to impose fines and bans on companies that fail to meet energy efficiency standards. Local authorities will have stronger enforcement powers, with fines of up to £30,000 for landlords who allow properties with energy performance certificate ratings below E. Additionally, the government will introduce a moratorium on fracking, ending new onshore licensing in England.
This decision comes after the previous Conservative government lifted the ban in 2022, leading to widespread public anger.
Critics argue that the government's focus on clean energy and its concerns over the green agenda are conflicting. The bill aims to protect communities and put an end to unethical practices within the energy sector, while simultaneously addressing the challenges of transitioning to a more sustainable energy future.
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