Ofgem spent nearly £30 million on consultant fees last year.
The surge in spending was primarily attributed to Ofgem’s efforts in addressing various challenges brought on by the “unprecedented” energy market conditions.
These challenges necessitated increased staff numbers and the engagement of external consultants to tackle issues such as insolvencies, the cost of living crisis, and the implementation of ambitious net zero plans set forth by the government.
In the annual accounts report, the regulator said: “The majority of Ofgem’s costs are staff costs.
“Overall, Ofgem operating expenditure was £12.4 million (10%) higher in 2022-23 (£142.2 million) compared to 2021-22 (£129.9 million), primarily due to increased staff numbers and consultancy spend to respond to the gas markets crisis and deliver new renewable energy schemes.”
An Ofgem spokesperson said: “We’ve been tackling a once-in-a-generation energy crisis – and it’s been all hands to the pump. We’ve had to scale up teams at speed with expert, external support to deal with everything from insolvencies, the cost-of-living crisis and government’s net zero plans.”
