Ofgem confirms chief executive to step down ahead of energy price cap change

Mr Brearley is taking on the post of permanent secretary at the Department for Energy Security and Net Zero under Ed Miliband.

Tim Jarvis, the current director general for markets, will serve as acting chief executive officer until a successor is appointed.

The outgoing chief executive said: "It has been a privilege to lead Ofgem and work alongside such a talented group of public servants. I am proud of all that we have achieved together.

"I am confident that Ofgem is in excellent hands with Tim alongside the wider executive committee and well-positioned to continue delivering on its mission to protect energy consumers now and into the future, as we advance through the energy transition.”

In reaction to the news, Mr Miliband described Mr Brearley as a "deeply experienced, dedicated and imaginative public servant".

He said: "As we continue to deliver our clean energy mission to bring down energy bills for families and take back control of our energy with clean, homegrown power, I am delighted to welcome Jonathan to lead the department."

Cabinet Secretary, Dame Antonia Romeo, added: "Jonathan brings a wealth of energy experience from within the Civil Service and beyond. I’m delighted to welcome him to the Department for Energy Security and Net Zero, and to the Permanent Secretary team.

"I look forward to working with Jonathan and the team at DESNZ as they deliver the Government’s agenda on energy security and clean power. I’d also like to thank Clive Maxwell for his brilliant leadership of the department during the interim period."

However, Mr Brearley's departure comes ahead of the expected spike in gas costs resulting from the ongoing Iran-US war in the Middle East.

In February, the regulator confirmed the price cap would fall by £117 for the period covering April 1 to June 30, 2026.

This change amounts to a reduction of around £10 a month for the average household using both electricity and gas. The price cap sets a maximum rate per unit and standing charge that can be billed to customers for their energy use.

For an average British family paying by direct debit for gas and electricity, the overall bill will be £1,641 annually.

Mr Jarvis said: "Today’s announcement will be welcome news for many households. Wholesale energy prices have fallen in recent months, and we’re investing in our network to safeguard the future energy system. The main driver of today’s reduction is the change to policy costs announced by the Chancellor in the budget.

"Our focus at Ofgem remains on bearing down on the costs within our control, and unlocking the investment needed to support the transition to a more stable energy system over the longer term."