Ofgem reportedly spends millions on consultants amid energy crisis

The energy regulator has allegedly spent £14 million in the first three months of the year

Ofgem has reportedly spent £14 million on consultants this year to assist with issues associated with the energy crisis.

It has been reported that the sum was awarded in the first quarter of the year and outpaces an estimated £13.54 million paid over both 2020 and 2021.

Consultancies KPMG, PwC and Baringa are among those who took a share of this pot of money to provide advice on ways to address rising energy prices.

The consultancy services, which were allegedly sought by the energy regulator, however, were within the rules set out by civil service HR on contracts, sources said.

They claim that these are “unusual times” for the energy market and the regulator alike and as such, there has been an increasing need for additional support.

That means that experts were brought in to tackle certain crucial issues.

A recent report by Citizens Advice pointed out that in the four years before the crisis and while companies started failing the number of people working on enforcement at Ofgem fell by 25%.

They said regulatory failings resulted in a “culture of non-compliance”, with slow or missed action in response to evidence of licence breaches and on issues including accurate billing, access to phone lines for customers, and offering prepayment options.

An Ofgem spokesperson told ELN: “Protecting consumers is always our top priority and as an organisation we are changing so that we can work at our full potential to support the transition to net zero, continue to protect consumers and help a fair and innovative energy market to thrive.

“This means creating the right culture and ways of working, talent, operating environment, digital capability, systems and processes.

“Our staff regularly engage with all suppliers and we have a strong track record in effective enforcement.”

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