Britain’s energy regulator, Ofgem, is facing a boardroom overhaul amid stinging criticism over alleged failures in its oversight of the prepayment meter scandal.
Over the comings months, ministers will recruit new directors to fill five of the eight seats on the board, including the role of chair, but chief executive Jonathan Brearley is expected remain in position.
The Department of Energy Security and Net Zero has launched a process to find a new chair to replace Prof Martin Cave, who will not seek to be reappointed when his five-year term ends in October. The chairman role pays up to £180,000 for about three days a week of work.
Officials also hope to find four new non-executives including replacements for two recently departed directors, Christine Farnish – who quit last year in an argument over the Ofgem price cap – and Paul Grout, who left in 2021. Lynne Embleton and John Crackett, who have terms due to expire this year, may also be replaced but could seek reappointment to the board, which currently has six members.
Cave, an author and chair of several UK universities, has overseen an unprecedented period at Ofgem, during which time its attempts to improve competition in the energy supply market was undermined by almost 30 failures, costing taxpayers an estimated £2.7bn.
The introduction of the Ofgem price cap, which aimed to keep a lid on bills, meant that suppliers were left unable to pass on wholesale costs to customers when gas prices began to rise sharply in 2021.
More recently, Ofgem has been criticised for its handling of the prepayment meter scandal. MPs and campaigners warned before Christmas that many households risked going without power because they could not afford to top of up their meters.
Ofgem later launched a review into supplier practices and was then bounced into introducing a temporary ban on prepayment meter installation after it emerged debt agents working for British Gas had force-fitted prepayment meters into vulnerable people’s homes.
This week Ofgem chief, Jonathan Brearley, told energy suppliers to uninstall prepayment meters that have been wrongly force-fitted and pay compensation now, rather than wait for the outcome of a review.
Brearley has resisted calls to resign including from the former prime minister Gordon Brown.
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Audeliss Executive Search has been appointed to hunt for board members to replace those who are leaving, according to Sky News, which first reported the boardroom shake-up.
A government spokesperson told Sky: “Audeliss are specialists in the recruitment of diverse executive and board level appointments. The recruitment process is in progress. The new Ofgem chair and non-executive directors will be announced in due course.”
Ofgem confirmed that “Professor Cave will not be seeking reappointment for the role”.
