The processes whereby Ofgem ensures licence compliance has evolved in recent years. The regulator has made efforts to increase the transparency around its enforcement action, shorten investigation times, and direct financial penalties for non-compliance to affected consumers.
It is also apparent that Ofgem is flexing its regulatory muscles more than it has done previously, with it threatening to remove licences if improvements are not forthcoming – as in the case of Iresa.
The chart this week shows that the average time to conclude an investigation has fallen this decade. Nonetheless, suppliers under formal investigation should expect investigations to last for a year and a half.