Government Publishes Ofgem Review, Granting Powers to Ban Bonuses
The government published the final Ofgem Review on 2026-04-30, setting out powers that would let ofgem enforce consumer law directly, hold executives individually accountable and limit bonuses when rules are broken. The report said the regulator needs to evolve as the energy market changes across retail, networks and new technologies.
The review is the first comprehensive look at Ofgem in its 25-year history and began in December 2024. It also comes after the energy price cap fell by 7% at the start of April, with the savings locked in until the end of June.
Ofgem Review powers
The measures would let Ofgem act without going through the courts before enforcing consumer law. They would also give the regulator a route to hold executives individually accountable for wrongdoing, a shift that goes beyond company-wide penalties and reaches the people running firms.
That change sits alongside the power to limit bonuses if rules are broken. For companies in the energy market, the report points to a clearer link between misconduct and personal consequences for senior staff, rather than leaving enforcement to broad corporate fines alone.
Energy price cap April
The government said it had acted in recent weeks to prevent unfair practices like price-gouging, help those who rely on heating oil and ensure businesses get a fair deal on their bills. The review was tied to the government’s wider aim of strengthening Ofgem as a consumer champion while securing investment in clean energy and supporting energy security and lower bills.
The report also landed as the government said families and businesses were worried about the impact of events in the Middle East on the cost of living. It said it was pursuing clean homegrown power, including bringing forward its next renewables auction, speeding ahead on new nuclear power and bringing plug in solar to the UK for the first time.
December 2024 review
For energy customers, the immediate change is not a new bill today but a tougher enforcement regime if the measures become law and are put into practice. The report sets out a regulator with more direct powers, and the government has now put that case on the record after a review it began in December 2024.
The practical question now is how quickly those powers are translated into action, especially for firms that face consumer-law cases, executives who could be held personally responsible and companies whose bonus structures may come under scrutiny.
