The Government published the final report of its review of Ofgem, the energy regulator for Great Britain, on 22 April 2026. The Parliamentary Under-Secretary of State for Energy Security and Net Zero, Martin McCluskey, told the Commons that the review delivers on a commitment to ensure consumers remain well protected from bad practice and that Ofgem is equipped to regulate a rapidly changing energy system1.
The review gathered over 20,000 responses to the public call for evidence, alongside engagement with consumer groups, suppliers, networks, generators and investors1. It was the first comprehensive review in Ofgem's 25-year history, begun in December 20242. A copy of the final report will be placed in the Libraries of both Houses1.
The Government set out a package of reforms covering five areas1:
| Measure | Detail |
|---|---|
| Statutory duties | Streamlined into three pillars: consumer protection, economic growth and delivery of net zero |
| Enforcement and redress | Stronger powers to address poor service and hold senior energy company leaders to account |
| Strategy and policy statement | An Ofgem-specific statement setting out the Government's strategic expectations while preserving Ofgem's operational independence |
| Organisational capability | Digital, technical, financial and analytical expertise |
| Transparency and accountability | Regular public progress updates and a five-yearly independent review of Ofgem's performance |
The Department for Energy Security and Net Zero said a new set of three equal principal objectives will be introduced, focusing on the interests of existing and future consumers, net zero and growth2. The report states that the Government will strengthen Ofgem's system-wide mandate and capabilities so that it can take whole-system, forward-looking decisions that reflect the interactions between different segments of the value chain1.
"Modernising Ofgem's statutory duties, streamlining them into three clear pillars of consumer protection, economic growth and delivery of net zero"
The ministerial foreword, by the Secretary of State for Energy Security and Net Zero, Ed Miliband, states that the measures will give Ofgem new powers to directly enforce consumer law without needing to go through the courts, hold executives individually accountable in cases of wrongdoing, and limit bonuses if rules are broken2. It also describes the review as the first step in giving Ofgem the power to regulate parts of the energy sector, such as heating oil, which it says have lacked proper consumer protection2. The report notes that Ofgem introduced stringent new rules for the installation of prepayment meters in 2023, and that the introduction of the price cap in 2019 was a significant intervention in the market2. Ofgem's role in supporting growth was recognised through the addition of a growth duty in 20242.
Why it matters for households
Ofgem sets the licence conditions that energy suppliers must meet and takes enforcement action when they are not met, and it manages the price cap that limits what households pay on default tariffs2. Changes to its statutory duties and enforcement powers therefore bear directly on how quickly a supplier can be held to account when service falls short, and on how compensation is handled when things go wrong. The report states that the reforms are intended to support quicker, fairer and easier compensation for billpayers2. The review also considered Ofgem's role across the whole energy system, including the interactions between generation, networks, system operation, retail markets and emerging flexibility services1. For a household, that system-wide remit covers the parts of the chain that sit behind the meter as well as the bill itself, from network investment to the connection of low-carbon technologies. The report says the reforms are designed to reduce unnecessary burden while raising standards2. The Government has not reported a change to the level of the price cap or to any specific household tariff as part of this review.
What happens next
The Government will now work closely with Ofgem, industry and consumer groups to take forward the implementation of these reforms1. The report states that DESNZ and Ofgem will also work with the National Energy System Operator and stakeholders to clarify and maintain aligned roles across the three organisations2. No implementation timetable beyond the five-yearly independent review of Ofgem's performance has been reported1.
Sources2 cited
- Ofgem Review: Final Report - Hansard - UK Parliament, hansard.parliament.uk
- Ofgem Review: final report - GOV.UK, gov.uk