Energy bills have risen sharply since 2020, with millions of households seeing significant increases in costs. At the same time, staff at Ofgem — the regulator responsible for overseeing the energy market — have received record levels of performance-related bonuses.
I uncovered this story by digging through Ofgem’s annual reports. Between 2020 and 2024, Ofgem staff collectively received a staggering £5.1 million in performance-related bonuses. Just last year, 1,233 Ofgem employees received a share of a £1.4 million bonus pot — continuing a trend where staff have taken home an average of more than £1,000 per year in performance-related pay.
Meanwhile, UK households saw their combined energy bills rise from £38 billion in 2020 to £59 billion in 2024. Domestic fuel bills increased by more than 50% in just two years, leaving the average home now spending £1,304 per year on gas and £1,274 on electricity — an all-time high that, even accounting for inflation, is nearly double what it was a decade ago.
Critics accused the quango, headed by £200,000-per-year chief executive Jonathan Brearley, of handing out bonuses despite its failures. Dennis Reed from campaign group Silver Voices called it “a reward for inaction” and said pensioners facing yet another 5% hike in April would be “incredulous” at Ofgem’s lavish bonuses.
And it’s not just campaigners who are unhappy. The government has repeatedly criticised Ofgem’s performance. Former Business Secretary Grant Shapps publicly rebuked Ofgem and said the watchdog was “too easily having the wool pulled over their eyes” in relation to a company used by British Gas forcing its way into homes to fit pay-as-you-go meters, despite signs that children and disabled people were living there.
In 2022, Ofgem was blamed for failing to prevent the collapse of 29 energy suppliers, which heaped an estimated extra £2.7 billion on to bills. Citizens Advice complained that Ofgem had allowed energy network firms, which provide pipes and cables to homes, to cash in on high inflation and pocket £4 billion in profits from the cost-of-living crisis.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “There always seems to be plenty of money in the energy system, apart from when it comes to helping households struggling in cold, damp homes.”
In December, the Labour government announced a review of Ofgem’s role, saying the quango needed to be better placed to protect households from poor service and rising prices. Energy Secretary Ed Miliband has written to the regulator, calling on it to move faster to protect consumers from rising energy bills.
Ofgem defended its payouts, claiming bonuses follow “a tough year-long appraisal process,” in line with Cabinet Office guidelines. Yet, with millions facing yet another rise in bills, the regulator may soon find itself forced to justify its generous paydays to a freezing public.
This investigation was published exclusively in the Sunday Express on March 9th, 2025. Read the full story below.
