Energy UK is calling for a major overhaul of Ofgem, claiming the regulator has become too large and bureaucratic to protect customers or enable investment at pace.
The paper lands as DESNZ reviews Ofgem’s performance and future role.
According to Energy UK, Ofgem’s headcount has grown 120% and its budget 200% over the past decade, while the energy workforce rose 8%.
The result, it says, is a tangle of rules—industry codes “four times longer than Shakespeare’s collected works”—that add cost and slow innovation.
The trade body links regulatory missteps to at least £4.5bn of extra costs for billpayers. It cites the 2021–2022 retail market failures and a reluctance to approve “investment ahead of need” for networks.
It also criticises “knee-jerk” investigations that drain resources while record customer debt continues to climb.
Energy UK argues the current remit encourages short-term reactions over long-term value.
Its prescription is a slimmer Ofgem focused on economic regulation of infrastructure, including networks and generation.
Consumer protection and competition should move to the Competition & Markets Authority (CMA) and scheme delivery oversight to other bodies.
Government should then set a tighter statutory remit, reduce Ofgem’s duties and step back from day-to-day pressure.
Energy UK points to the FCA’s recent pruning of guidance as a model for cutting burden without weakening standards.
The goal is to enable long-term investment, speed up grid build-out, and lower administrative overheads so savings flow to customers.
Energy UK says this would create clearer accountability across the system.
“Systemic regulatory failures have left customers on the hook for billions,” said Dhara Vyas, Energy UK’s chief executive. “A smaller, more expert Ofgem can facilitate growth and lower bills, while retailers are held to high standards by the CMA.”
Ministers have set a target to cut the cost of regulation by 25% this Parliament.
Energy UK wants that ambition matched by a reset that delivers independent, focused, and predictable regulation.
The trade body says heavier regulation is not better regulation.
Energy UK urges Ofgem reform to cut red tape and unlock investment appeared first on Energy Live News.