Ex-Ofgem chief admits regulator could “have moved faster” 

Brearley told the business, energy & industrial strategy committee that the regulator was on course to commit to raising the cap on household energy bills to about £2,800 in October. 

In April 2022, Ofgem enabled the average annual bill to reach £1,971 when the cap was increased by £693.  
 
Although Brearley said the figure was provisional, he maintained it was the most accurate estimate at this point in time.  

 
Brearley confirmed he would be writing to chancellor Rishi Sunak this afternoon (24 May), to state the soaring cost of wholesale gas – which has increased by 10 times the normal price in recent months, and spiking electricity costs – were responsible for the uplift.  

It comes as Michael Lewis, chief executive of E.ON, warned on 22 May that if the cap rises again, 12m households could descent into fuel poverty. The number would almost double, as 6.5m households are experiencing fuel poverty at the time of writing.  

 
Former Ofgem chief executive Dermot Nolan told the committee that “if we had moved faster” the regulator could have stymied some of the sector’s difficulties.  
 

Nolan said the “body politic” hoped Ofgem would prioritise competition over regulatory supervision, due to the big six firms’ massive market share of 98-99%.  
 
He said a “permissive regime” encouraged new firms to enter the market “encouraged by government but also [was part of] a conscious decision of the Ofgem board”. 
 

“I don’t think any regime would have been entirely fit for purpose, but I do accept that if we have moved faster we would have stopped some of the failures that have happened,” Nolan said.