Ofgem allegedly spent millions on consultants during crisis

Ofgem allegedly spent millions on consultants during crisis: Ofgem has reportedly spent £14 million for consultants in 2022 to help with concerns connected with the energy crisis.It has been rumoured that the amount was awarded in the 1st quarter of the year and surpasses a predicted £13.54 million paid throughout both 2020 & 2021.Consultancies KPMG, PwC and Baringa are just some of those who were given a share of this small fortune to give advice on ways to approach soaring energy prices.Sources said, the consultancy services that were allegedly seeked out by the energy regulator were within the rules outlined by civil service HR on contracts.They believe that these are “unusual times” for the energy market as well as the regulator and there has been an growing need for extra support.This is the reason why experts were brought in to tackle certain important issues.A current report by Citizens Advice highlighted that in the four years leading up to the crisis and during the time that companies started failing, the amount of people working on enforcement at Ofgem declined by 25%.They remarked that regulatory failings brought about a “culture of non-compliance”, with slow or missed effort in reaction to proof of licence breaches & on issues involving accurate billing, access to phone lines for customers, & offering prepayment choices.An Ofgem representative stated: “Protecting consumers is always our top priority & as an organisation we are changing so that we can work at our full potential to support the transition to net-zero, continue to protect consumers and help a fair & innovative energy market to thrive.“This means creating the right culture & ways of working, talent, operating environment, digital capability, systems and processes.“Our staff regularly engage with all suppliers & we have a strong track record in effective enforcement.”Ofgem allegedly spent millions on consultants during crisis