The energy regulator Ofgem has come under renewed pressure after figures obtained by the Shadow Energy and Climate Change Secretary, Caroline Flint, show that the energy watchdog awarded staff in excess of £640,000 in bonuses over the last two years.

Responding to Flint’s written request, Charles Hendry, Minister of State for Renewable Energy published the following table highlighting the level of bonuses given to Ofgem staff:

In excess of


















Despite being charged with regulating the energy market to control spiralling bills, UK consumers’ energy bills have risen dramatically in recent years, with an average increase from £605 in 2004 to £1,060 in 2010.

A recent report by IPPR warns that UK consumers could end up paying £1.9 billion too much on fuel if Ofgem did not do more to improve competition and ensure fair pricing for consumers.  

The revelation of such generous bonus payments will further incense those operating in the renewable market after a recent string of disappointments from the watchdog including, a 95 percent failure rate in processing RHI applicants and delaying the rollout of the domestic RHI until 2013.    

The shocking figures show that 194 of Ofgem’s top level employee’s received an average bonus of £3,300 each. Flint commented: “Hard-pressed families and pensioners struggling to make ends meet will be astonished Ofgem paid staff over a million in bonuses, while energy bills soared.”

An Ofgem spokesman told the Telegraph: “Pay awards are set in accordance to Cabinet rules in the same way as for all civil servants. Our base pay has been frozen and the scope and level of performance-related awards has been reduced in line with Government rules.”