{"text":[[{"start":7.6,"text":"Britain’s energy regulator is set to be given powers to block executives receiving bonuses if they break licence conditions, as part of a shake-up of the watchdog after a government review. "}],[{"start":18.549999999999997,"text":"Ofgem will be able to claw back bonuses or prevent them being awarded if executives are found to have caused “significant harm” to consumers, according to details of the review published on Wednesday. "}],[{"start":29.499999999999996,"text":"“Significant harm” could include overcharging customers, while the government said the regulator would in serious cases also be empowered to block appointments to senior positions in the energy sector. "}],[{"start":40.949999999999996,"text":"The shake-up comes after the government gave regulator Ofwat the power to block water executives’ bonuses if they failed to protect the environment and consumers after a public outcry over executive pay and sewage pollution in rivers. "}],[{"start":56.449999999999996,"text":"There is no such groundswell of anger towards the energy industry, and the government said customer satisfaction with suppliers was at “record highs”. "}],[{"start":66.14999999999999,"text":"Centrica-owned British Gas came under fire over forcible installation of pre-payment meters in 2023, which is still under investigation by Ofgem, and there has been general concern over energy prices. "}],[{"start":80.1,"text":"A number of companies have also been found in breach of licence conditions, with the regulator last month censuring National Grid for failing to properly maintain a substation in Cumbria between 2016 and 2021."}],[{"start":95.44999999999999,"text":"But it is unclear how the “significant harm” test would be applied to future cases; one industry figure said it was a “performative” measure that would do little to tackle challenges faced by the sector. "}],[{"start":106.64999999999999,"text":"The government said the new powers would be introduced via legislation “in due course”. A series of other steps — such as bolstering consumer protection powers and stripping Ofgem of responsibility for overseeing home upgrade schemes — would create a “stronger” regulator, it added. "}],[{"start":122.49999999999999,"text":"Ministers launched the review of Ofgem, which was established at the start of this century, in December 2024 as the energy sector emerged from a crisis. Rising gas prices pushed almost 30 suppliers out of business in late 2021 and early 2022. "}],[{"start":140.2,"text":"Ofgem was heavily criticised over its handling of the crisis, with critics accusing the watchdog of allowing too many poorly capitalised companies into the market. "}],[{"start":149.35,"text":"Trade body Energy UK — which last year said the regulator had become “too big and bureaucratic” — said on Wednesday that the new measures fell “short of the radical reform necessary”. "}],[{"start":160.9,"text":"The problem was not that Ofgem had too few powers, “but rather how the regulator has chosen to use its powers in the past”, it added. "}],[{"start":169.3,"text":"The changes at Ofgem — which reports to the Department for Energy Security and Net Zero — come as the sector is under pressure to meet the government’s decarbonisation targets and respond to the increase in wholesale prices triggered by the war in Iran. "}],[{"start":184.55,"text":"Jonathan Brearley stepped down as Ofgem chief executive at the end of March to join the energy department as permanent secretary. "}],[{"start":193.05,"text":"Interim chief executive Tim Jarvis said the review set out “ambitious, necessary reforms”. "}],[{"start":200.45000000000002,"text":"Ofgem had delivered “significant reforms in recent years”, he added, “but this review enables us to make changes at a more systemic level to ensure we are delivering an energy system that works for consumers”. "}],[{"start":218.90000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776830166_8809.mp3"}