Dermot Nolan appeared in front of the Energy and Climate Change Select Committee for the first time today and stated that Ofgem needed to take “a few more risks in order to get things done more quickly”.
He told MPs: “It is reasonable for a regulator to say we are going to take a more aggressive approach.
“That may involve more legal risk but I think it is a reasonable thing to do.”
When Nolan was questioned on what his priorities for Ofgem are under his tenure, he stated that rebuilding consumer trust topped the list.
He said: “The first priority it to try and rebuild consumer trust in the energy sector so consumers feel they are getting a fair deal from their suppliers.”
He added he also wanted to ensure that Ofgem itself was “fit for purpose” and was also “known and trusted” by consumers.
Nolan categorically denied that Ofgem had been “leaned on” by the secretary of state to refer the energy market to the Competition and Markets Authority (CMA), telling MPs it was “an independent regulatory decision”.
In relation to the expected CMA inquiry into the sector, Nolan told the committee it was the “appropriate time”, and that it would not impact investor confidence in the short term, and would actually improve things in the future.
He said: “There is sufficient uncertainty anyway, and if this reference didn’t take place this uncertainty would continue and there still wouldn’t be a terribly fertile climate for investment.”