Britain’s energy watchdog Ofgem will soon be able to block or claw back executive bonuses when licence conditions are breached, the government review revealed on Wednesday. The new bonus‑blocking powers target “significant harm” to consumers – for example overcharging – and could also bar senior appointments in severe cases. The move mirrors recent powers granted to water regulator Ofwat after public anger over pay and sewage pollution.

The proposal follows a string of high‑profile breaches. British Gas is still under Ofgem investigation for its 2023 forced installation of pre‑payment meters, and the watchdog censured National Grid last month for failing to maintain a Cumbria sub‑station between 2016 and 2021. Industry voices warn the “significant harm” test is vague, calling the measure largely symbolic rather than a solution to systemic failures.

Legislation to embed the powers will be drafted “in due course”, while the review also proposes strengthening consumer protection and stripping Ofgem of home‑upgrade scheme oversight. Trade body Energy UK argues the changes fall short of the radical reform needed, blaming past misuse of existing powers rather than a lack of authority. The regulator now faces pressure to prove it can safeguard consumers as decarbonisation targets tighten.