The government will introduce legislation this week to strengthen regulatory action against energy suppliers and brokers that mis-sell contracts, including new measures to restrict executive pay when companies are found to have broken the rules.
Under provisions in the energy independence bill, which is due to be introduced on Wednesday, the energy regulator Ofgem will be granted powers to order compensation for customers, impose fines on offending firms and ban operators that have pushed households and businesses into overpriced contracts.
A central element of the package is the ability to curb bonuses and other pay incentives for senior executives at suppliers and broker firms judged to have engaged in malpractice — a move framed by ministers as a way to prevent managers from "rewarding themselves while customers suffer." The measures are aimed at deterring aggressive or deceptive sales practices that have drawn criticism from consumer groups.
Regulators and lawmakers say the changes are intended to increase accountability across the retail energy market and to give Ofgem stronger tools to act swiftly against bad actors. The government has highlighted the harms caused when customers are steered into poor-value deals, leaving households and businesses facing higher bills.
Industry groups have previously warned that tighter rules could raise compliance costs for firms, but supporters of the bill argue enforcement powers will restore consumer confidence and level the playing field for companies that follow the rules. The bill’s introduction marks the latest effort to tighten oversight of the energy market following years of scrutiny over supplier conduct and the sector’s complex sales arrangements.
The measures will now proceed through the parliamentary process, where they are expected to be debated by MPs and peers before becoming law.