Energy Bosses Could Face Banker-Style Regulation, Says UK's Largest Supplier CEO
Energy industry bosses could soon face regulation similar to that of bankers, according to Chris O'Shea, CEO of the UK's largest energy supplier. This proposal comes amidst intense scrutiny of Ofgem's role in the energy sector, following the 2022 gas crisis that led to the collapse of 30 suppliers.
O'Shea believes that extending the Senior Managers Regime, currently applied to bankers, to energy bosses could enhance governance in the industry. This regime, overseen by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), ensures senior bosses are fit and proper persons for their roles.
Following the 2022 crisis, the government initiated a boardroom reset at Ofgem. This included appointing Jonathan Brearley as the new chair and adding four new non-executives. O'Shea supports Ofgem bolstering its remit to oversee energy bosses, similar to how the FCA and PRA regulate bankers.
O'Shea's proposal, despite potential additional checks, aims to streamline the application process for energy bosses. He believes this could help restore public trust in the energy sector, following the recent crisis. The energy industry awaits Ofgem's response and potential regulatory changes.
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