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Jonathan Brearley might be the most important British climate pioneer you’ve never heard of. In the past 10 years, the former civil servant has quietly steered the UK to its first climate legislation, and then to the policy framework responsible for creating Britain’s cleanest electricity system since the 1880s. As the new chief executive of Ofgem, Brearley plans to inject climate action into the core of the UK’s energy regulation, too.
This may prove his toughest challenge yet.
Brearley’s first task as Ofgem’s new boss was to answer critics who claimed the watchdog was out of touch with the UK’s “net zero” agenda because its rigorous checks and balances were founded upon the duty to protect customers, not the environment. In the balancing act between ambitious green spending and home energy bills, many companies feared that Ofgem would err on the side of short-term savings.
Brearley’s nine-point plan to prioritise climate action seeks to prove the doubters wrong.
“We take net zero very seriously, and as seriously as our other objectives. What you will see is us making sure that this is factored into all our decisions in quite a fundamental way.”
Brearley joined the energy regulator in April 2018 to lead Ofgem’s energy networks team after stints within government building the foundations of Britain’s clean energy system. First, as the lead director behind the UK’s first climate legislation, the 2008 Climate Change Act, then as the architect of the government’s clean energy reform, which ignited a swing from fossil fuels to green electricity.
His wide-ranging green strategy aims to help get 10m electric vehicles on our roads by 2030 and support a fourfold increase in offshore wind generation and a shift towards low-carbon heating. Ofgem is still committed to keeping a lid on energy bills, but will also lead a crackdown on “greenwash” energy deals and push for new tariffs that encourage homes to help balance the energy system.
Brearley plans a rewiring of the energy regulator itself, too. He says Ofgem’s 1,000-strong workforce plans to “get out of the building” and beyond the routine box-ticking required of every industry regulator.
“We know we need to be faster moving, more engaged with the world that we’re working in, and these things will be part of what we’ll do as we change over the next few years.”
He admits there are “absolutely” tensions between plans for a bold, green future and the need to safeguard vulnerable homes, which risk being left behind.
This challenge may prove greater for Brearley – who started as chief executive last month – than his predecessors. The pace of change in the energy market will mean more investment in a low-carbon energy system, paid for through energy bills, as well as a rush of disruptive new technologies and companies into the market.
He keeps one particular customer in mind. She is of retirement age, living in social housing, and was being overcharged hundreds of pounds by her existing energy supplier. It took almost six months to fix the problem with the help of an energy adviser at a charity.
“Two things struck me when I met her,” says Brearley. “The first is how much of a struggle it was for her to fix something which represented an important amount of money in her life. But the second was that when I asked her if she planned to switch away from her supplier she said she wouldn’t – because she’s just not comfortable choosing a new supplier.”
“There are people who are poised to benefit from changes in the energy system, but those who will find it difficult. That means making decisions which are based on the investment that we need to get to net zero, but also how we can share those costs out in a way that’s fair,” Brearley says.
In the past, Ofgem has been criticised for overseeing “rip-off” energy deals and poor customer service from suppliers, while network companies profiteered at the expense of rising bills.
Brearley says Ofgem “will be less afraid of stepping in where we feel that customers are being harmed” and will “be driving a very hard bargain” with energy network owners.
“I’m sure at some point these companies will claim that they can’t make investments without higher rates of return. Our job is to stick to the evidence, to stand firm, and get what we think is a fair deal for customers,” Brearley says.
“I am very clear that we won’t make this transition to net zero if customers feel ripped-off.”
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