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Energy Firms Demand Ofgem Overhaul, Accuse It of Hiking Bills
22 Oct
Summary
- Energy UK calls for Ofgem to be stripped of responsibilities
- Ofgem's budget grew 200% while energy sector workforce grew only 8%
- Energy firms claim Ofgem's "red tape" has reduced growth and pushed up costs
As of October 22nd, 2025, the UK's energy companies are calling for a major shakeup of the industry regulator, Ofgem. The trade association Energy UK has accused Ofgem of overseeing a "dramatic increase in red tape" that has reduced growth and pushed up costs for households.
In a recent report, Energy UK noted that despite the government's plan to cut regulatory costs by 25%, Ofgem's headcount has actually increased by 120% over the past 10 years, while its budget grew by 200%. In contrast, the energy sector's workforce has grown by only 8% during the same period.
The industry group is now urging the government to strip Ofgem of many of its duties and limit its focus to the economic regulation of energy networks and infrastructure. Energy UK proposes handing consumer protection responsibilities to the Competition and Markets Authority instead.
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The calls for Ofgem reform come amid growing dissatisfaction with the government's energy policies, which sector bosses warn will lead to steep hikes in gas and electricity bills by the end of the decade.
