Ofgem’s Reform: What It Could Mean for Business Energy

Kieron Blundell

Director of Energy Solutions

Following the Ofgem Review (final report published 22 April 2026), the government has significantly strengthened Ofgem’s remit and enforcement power. 

Although the announcement is framed around consumer protection, it is also relevant to the non-domestic market as well. 

For organisations buying energy, these reforms signal a tighter expectation of fair dealing, clearer standards, and faster resolution when things go wrong, especially when managing renewals, disputes, billing performance and third-party support.

What’s changing in Ofgem’s remit

  • Stronger enforcement powers so Ofgem can enforce consumer law directly rather than relying on lengthy court processes. One of the biggest shifts is that Ofgem no longer has to go through the courts to enforce supplier compliance and can directly require suppliers to: correct rebills, refund overcharges or built-up credit balances and pay compensation.

  • Accountability at the top, including powers to ban executive bonuses if rules are broken. Ofgem can withhold or ban owners’ and senior managers’ bonuses where suppliers breach licence conditions or consumer protections.

  • A remit that can extend into new areas of the market where consumers currently have limited protection. This includes powers to regulate previously under-regulated areas, starting with heating oil, which may be relevant for off-gas housing stock and rural schemes.
Colleagues reviewing renewable energy plans on a laptop as part of an RE100 strategy.

What this could mean in practice for businesses

Faster resolution when things go wrong

For many organisations, the pain isn’t only the unit rate, it’s the friction: slow query cycles, disputed reads, billing errors, unclear contract positions and lengthy supplier back-and-forth. 

A regulator that is explicitly being geared for quicker intervention should, over time, place more pressure on market participants to improve how issues are handled and resolved.

In particular, Ofgem having the ability to order corrections, refunds and compensation means it has more practical tools to address supplier complaints, slow handling of queries and unfair treatment. 

This is  particularly important for multi-site portfolios, where small problems scale quickly and admin time becomes a real cost.

Higher expectations on sales conduct and transparency

One of the clearest signals for the non-domestic market sits in the government’s wider focus on third-party intermediaries (TPIs). 

The Secretary of State letter on ‘supporting consumers’ reinforces themes that business buyers will recognise: clearer communication, better transparency on costs and a stronger standard of care, especially during volatile market conditions.

Even where formal regulatory protections differ between household and non-domestic segments, the direction is the same: less tolerance for ambiguity, more expectation of clarity.

Better governance becomes a commercial advantage

As scrutiny increases, the businesses that do best will be the ones with clean decision-making: documented assumptions, clear risk ownership and a procurement approach that can stand up to internal and external challenges.

This approach protects organisations when markets move, bills don’t reconcile or when contract terms become a point of dispute.

It also reduces exposure where issues such as billing errors, unfair charges or poor complaint handling would otherwise take longer to resolve.

What businesses should be doing now

If you’re responsible for energy procurement, contract management or budget planning, the practical focus should be to start with contract clarity.

You must understand what is fixed, what is pass-through and where the risk sits. 

Make sure you have visibility of costs and assumptions, not just the headline rate. 

And if you buy through third parties, ensure there is a clear audit trail of what was advised, what was factual, and what drove the final decision.

If you already have that discipline in place, reforms like this tend to be a net positive: the market moves closer to the standards you already expect.

Where EIC Partnership fits

At EIC Partnership, we keep a close eye on regulatory changes because they shape what good procurement, contract management and supplier performance should look like. 

More importantly, we apply this insight day to day by keeping documentation clear, setting out risk properly and making responsibilities explicit. 

This makes it easier to challenge issues quickly and ensures procurement decisions stand up to scrutiny. 

The new protections and powers are designed to support fairer outcomes by enabling faster intervention where suppliers fail to meet service obligations, strengthening accountability at senior management level and reducing the time it takes to put billing and service issues right. 

If you’d like to discuss what this reform could mean for your energy procurement approach, please get in touch.