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Ofgem is Britain’s gas and electricity industries regulator. It’s role is to protect and look after consumers interests by promoting competition where possible. Since the gas and electricity markets were opened to competition in 1998, consumers have been free to switch their gas & electricity suppliers.

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In the late 1990s, the Government privatised the electricity and gas markets with a view to bring in competitions among the suppliers and thus to reduce the prices. The Gas and Electricity Markets Authority was also formed to oversee the functioning of the market . The Authority manages the Office of Gas and Electricity Markets (Ofgem).

The Governing Authority is a board that includes non-executive and executive members and a non-executive chair. The non executive members are drawn from a range of areas including industry, social policy environmental work and finance. The executive members are the chief executive of Ofgem and three managing directors.

The Ofgem has powers under the Gas Act 1986, the Electricity Act 1989, as amended by the Utilities Act 2000. The authority also has powers under the Competition Act 1998 and the Enterprise Act 2002

A complete transparency is kept by the Ofgem in all its activities by way of publishing minutes of its Authority meetings, conducting annual open meetings and ensuring full and through consultations in making corporate and developing decisions.

The cost of running the Ofgem is covered through collection of licence fee from the companies coming under the regulation of the Authority.

Major activities of Ofgem
The major role of the Ofgem is to protect the interests of consumers by promoting competition in the market, wherever possible and regulate the monopoly companies which run the gas and electricity networks.

The other major functions of Ofgem include the following:

(1) Ensuring to secure Britain’s energy supplies by regulating the market and ensuring adequate investment in the networks.
(2) Helping to protect the environment by helping gas and electricity industries to achieve environmental improvements as efficiently as possible.
(3) One more major responsibility is to look in to the needs of vulnerable customers, particularly older people, those with disabilities and those who are on low income level
Contact Information

The Ofgem is not directly approachable to the common public. Complaints or enquiries are handled by another agency, the ‘Energywatch’.
All consumer problems are to be directed to the watch dog organisation ‘Energywatch’ which is also the Gas and Electricity Consumer Council. It is an independent body who is supposed to offer information and advice to the consumer. This body has powers to investigate all complaints and enquiries on behalf of the consumer including the areas that come under the Ofgem’s regulation. Energywatch also rises important matters with Ofgem when issues that require regulatory consideration are detected.
Energy watch can be contacted on the following help line:
0845 906 0708
www.energywatch.org.uk