Do they deserve a pay rise? Ofgem hands out £898,056 in bonuses
Energy watchdog Ofgem has handed out £898,056 in bonuses – despite the average energy bill rising to £1,135 per year.
The largest bonus paid out last year was a whopping £12,500.
That alone would cover all the energy bills for one house for 11 years!
Ofgem's top dog - chief executive Dermot Nolan - is being paid £205,000 a year.
He and his executive team have shared a total of £135,000 in bonus payments over the last three financial years, it was revealed by Express this week.
We ran the maths on that too and that would pay for – wait for it – the annual energy bills for 118 houses.
Nolan recently came under fire from MPs for failing to protect customers.
Nolan will not get his £15,000 bonus this year after he admitted Ofgem had not acted fast enough to help households realise they were on the most expensive energy tariffs, otherwise known as standard variable rate tariffs (SVTs).
Nolan said the bonuses were justified for other staff because much of Ofgem’s work was not in the consumer sector.
Do they deserve it?
765 of Ofgem staff qualified for a bonus last year, taking home an average of £1,173 each.
Bonuses paid to staff have soared since 2010.
In 2010, £664,260 worth of bonuses were paid, compared to £898,056 paid in 2017 - a 35% jump.
The average Ofgem employee’s total pay packet was £40,000 last year.
Meanwhile, Ofgem chairman David Gray is paid £160,000 per year.
The watchdog is responsible for regulating the energy market so the big suppliers do not rip off consumers.
Ofgem has come under fire for being too weak with energy companies when they hike energy prices as oil and gas costs rise - but are slow to drop prices when the cost of the raw materials drops.
A spokesman for Ofgem said: “All of Ofgem’s pay awards, including performance related awards, are set in line with Cabinet Office guidance, and details of these are published on Ofgem’s website.
“Ofgem’s staff are committed to making the energy market fairer, smarter and more competitive for all consumers.”
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