Regulating the Gas & Electricity Markets

OfgemOfgem (the Office of the Gas and Electricity Markets) is the regulator for Britain’s gas and electricity markets and its main priority is to protect the interests of customers both now and in the future by promoting competition wherever appropriate and regulating the monopoly companies which run the networks transporting energy around Britain.

Other priorities include helping to protect the security of Britain’s energy supplies and helping gas and electricity industries achieve environmental improvements as efficiently as possible. Ofgem has other sustainable development objectives including a specific duty to have regard to the interests of vulnerable customers who are disabled, chronically sick, elderly, or living on low incomes.

Ofgem is governed by an Authority consisting of non-executive and executive members and a non-executive chair. Non-executive members bring experience and expertise from a range of areas including industry, social policy, environmental work, finance and Europe. The executive members of the Authority are Ofgem’s Chief Executive and three Managing Directors.

The Authority determines strategy, sets policy priorities and takes decisions on a range of matters, including price controls and enforcement issues. The Authority's powers and duties are largely provided for in statute, principally the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002 and the Energy Act 2004, as well as arising from directly effective European Community legislation.

Ofgem is independent of the companies it regulates. However, licensees are obliged to pay an annual licence fee which is set to cover Ofgem’s costs. Ofgem operates under a five year cost control regime that runs from 2004-2009. It pegs Ofgem’s expenditure growth at 3 percentage points below the retail price index. This will reduce costs by more than £5 million in real terms by 2010.

For further information about Ofgem please visit www.ofgem.gov.uk

Ofgem London
9 Millbank
London SW1P 3GE
T: 020 7901 7000

Ofgem Scotland
3rd Floor
Cornerstone
107 West Regent St
Glasgow G2 2BA
T: 0141 331 2678